Govt leadership spill hits confidence

Consumer confidence has drifted lower amid government leadership speculation and concerns about the economy.

Instability within the Abbott government and economic concerns have dampened consumer confidence, offsetting any excitement that last week's rate cut might have sparked.

Confidence fell 0.6 per cent last week, according to the ANZ/Roy Morgan consumer confidence survey on Tuesday.

ANZ chief economist Warren Hogan said households were concerned about the weak economic outlook that had led to the rate cut, as well as government leadership speculation.