The overall index decreased 2.6 points during the last week of February, now 13.1 points below the same week a year ago.
Consumer Confidence in Queensland was down 10.4 points to 90.0 as homes have been flooded across the region.
Western Australia also took a turn this week, down 5 points to 97.4 as the state's Covid cases increased rapidly over the past few weeks.
According to Roy Morgan, just 14% of Australians expect ‘good times’ for the Australian economy over the next 12 months compared to 25% that expect ‘bad times’.
ANZ Head of Australian Economics David Plank said confidence dropped 2.6% last week amid rising COVID cases in WA, floods in Queensland and northern NSW and escalating geopolitical tensions.
"Most of the decline took place during the latter part of the week as daily COVID cases breached 1,000 in WA, massive storms battered the east coast and the invasion of Ukraine began," he said.
"Confidence fell 1.8% in Victoria, 10.9% in Queensland and 4.9% in WA, while it rose 0.7% in NSW and 3.6% in SA.
"The fact Queensland and WA fell the most suggests local factors were key. Household inflation expectation surged to a new seven-year high at 5.3% as retail petrol prices continued to climb higher."
The report also noted almost two-thirds of the interviews for this week’s Consumer Confidence report were conducted prior to Russia's invasion of Ukraine.
What to expect for post-flood property market?
According to CoreLogic, following the Brisbane floods in 2011, the city’s dwelling values sustained a 6.1% decline from January 2011 to January 2012.
However CoreLogic said it is difficult to isolate the impact of flooding on property values, as Brisbane dwelling values were already trending lower from mid-2010.
This decline was triggered by a tightening in monetary policy amid a resources boom and Australia’s recovery from the GFC.
Research from real estate network PRD indicates the hardest-hit suburbs to record median house price falls in the 12 months after the 2011 floods included Albion (-16.2%), New Farm (-27.6%), and South Brisbane (-40%).
However Propertyology's head of research Simon Pressley told Savings.com.au on Wednesday he expected volume not value, to be impacted.
"If anything, the torrential rain will cause a reduction in the volume of properties listed for sale and for rent at a time when they are already at record lows," he said.
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