Local consumers were gloomier after Donald Trump's inauguration as US president and UK Prime Minister Teresa May unveiled plans for a hard Brexit.
The ANZ-Roy Morgan Australian Consumer Confidence Survey fell 1.9 per cent to a level of 117 in the week ending January 22.
ANZ senior economist Jo Masters said every subindex except consumers' views on current finances fell.
"The new year jump in consumer confidence partly unwound last week, likely reflecting the end of the traditional holiday season and, perhaps, the fall in domestic stock prices. Recent headlines about Brexit and ongoing uncertainty about the impact of a Trump presidency may also have impacted," she said in a statement.
"Even so, the headline index remains quite robust and, encouragingly, households' views of overall financial conditions remain well above the long-term trend, suggesting a positive outlook for consumer spending."
Households' views about their own future finances dropped three per cent, to the lowest level in five weeks.
However, consumers' views on their current finances compared to a year ago edged up 0.7 per cent.
But, survey respondents were two per cent more pessimistic about economic conditions over the next 12 months, and 2.4 per cent more downbeat about economic conditions over the next five years.
Households' views on whether now was a good time to buy a household item also dropped, by 2.5 per cent, ending a brief post-Christmas bounce.
Ms Masters said that ahead of the December quarter inflation figures, to be released on Wednesday, the consumers' inflation expectations index rose to 4.4 per cent, from 4.0 per cent in December.
"However, this likely reflects an increase in petrol prices rather than a broad-based increase in inflationary pressures," she said.
