Westpac chief economist Dominick Stephens says tougher lending rules and higher petrol prices may be denting consumer confidence.
The Westpac McDermott Miller Consumer Confidence Index issued on Monday morning has dipped slightly since June, from 116.6 to 115.4.
However, it is still the second highest result since June 2010.
Mr Stephens said people may be worried about rising fixed-term mortgage rates and new restrictions on low mortgage deposits, announced by the Reserve Bank last month.
He said rising petrol prices could also be leaving people with less disposable income.
But Mr Stephens said the index still shows a strengthening economic recovery, and most households expect their financial situation to improve in the next year.