A slowing economy and concerns about Australia's key trading partner have sent business and consumer confidence to fresh lows.
Consumers haven't been as downbeat since July 2014, according to ANZ and Roy Morgan's weekly reading, mainly because of the release last week of the weakest quarterly economic growth figures in more than two years.
Business confidence has also tumbled, hitting a two year low in August, amid plunging share markets and worries about China's economic growth, National Australia Bank's monthly survey showed.
In contrast, business conditions have improved to their strongest levels in 10 months, particularly trading volumes and profitability.
NAB's business survey showed a falling Australian dollar and low interest rates are providing a boost to non-mining sectors of the economy.
CommSec chief economist Craig James said tax breaks in the federal budget were also a factor, but the Australian dollar's fall to almost 70 US cents in August was key.
"For businesses, especially in rural and regional areas, the lower Aussie dollar is good news. It is good news for exporters, tourist operators and retailers," he said.
UBS economist Scott Haslem said NAB's survey showed the non-mining sectors of the economy - crucial to economic growth amid the mining investment downturn - were on the rise.
"While the economy continues to face significant headwinds from the lower terms of trade and associated income recession ... today's data adds weight to our view that growth is not on track to wilt meaningfully below two per cent," he said.
June quarter economic growth of 0.2 per cent took the annual rate of growth to 2.0 per cent.
Mr Haslem said there is no current need for more rate cuts from the Reserve Bank, although the impact on confidence of uncertainty about China poses a risk to the economy.
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