Consumer confidence has fallen to the lowest level in more than two years.
The Westpac McDermott Miller Consumer Confidence Index fell to 113.0 in the June 2015 quarter, from 117.4 in the three months ended in March.
That is the lowest level since March 2013, when the Index was 110.8.
However, confidence remains slightly above its historical average of 111.5.
Westpac chief economist, Dominick Stephens, said the drop in consumer confidence was not surprising, given the steady drumbeat of bad news around the dairy sector.
He said consumers were distinctly less upbeat about economic prospects than they were three months ago, although people's reported attitudes to spending were still pretty positive.
Mr Stephens said the drop in consumer confidence could have been worse if not for the resilience seen in some urban centres.
