Consumer confidence faltered in December, according to the Westpac-Melbourne Institute consumer sentiment index, which dropped 2% to 92.8.

The drop reflect renewed pessimism about the economic outlook, with the sub-index for the next 12 months plunging 9.6% to 91.2, and the 5-year sub-index down 7.9%.

Several factor were likely to have contributed to the more negative outlook, including a disappointing Q3 GDP update, inflationary concerns and uncertainty about interest rate cuts.