The 0.5 per cent dip in ANZ and Roy Morgan's weekly indicator was led by a sharp 6.2 per cent drop-off in the "current financial conditions" barometer.
This follows a 9 per cent jump the week before on this marker of financial health.
The 'future financial conditions' gauge also fell 1.9 per cent.
But these falls were partially offset by a recovery in "current economic conditions" - lifting 4.9 per cent after a 2.8 per cent fall the week before - and "time to buy a major household item" - which ticked up by 5.2 per cent.
ANZ head of Australia economics David Plank said it was common to see consumer interest in buying big ticket items grow in the weeks before Christmas.
He said the same was true of the Black Friday sales in November, which also helped keep the intention-to-spend indicator elevated.
The drop-off in consumer confidence follows three consecutive weeks of gains, but based on long-run averages, the index remains deep in negative territory.
The troubling state of the economy is also weighing on the minds of financial executives.
A Deloitte survey found close to a record high of 92 per cent of respondents rated uncertainty levels as higher than normal, up slightly from six months ago.
Only 20 per cent considered now a good time for taking business risks.
The research also revealed a gap between how well chief financial officers think the economy is faring versus how well their own businesses were holding up.
Deloitte partner Stephen Gustafson said data security and cyber attacks had rocketed up the ranks of pressing concerns in the wake of a few high-profile data breaches.
"Yet less than half of all survey respondents agreed they were prepared to handle a significant cyber incident, making their vulnerability a serious risk across areas including trust and reputation, and operational disruption," he said.
While most agreed inflation would peak between seven and eight per cent, financial leaders held a range of views about when inflation would peak.
"This timing will impact CFO decision-making on mitigating the impacts of inflation on their business," he said.
The bulk of those surveyed expected to see more interest rate raises over the next 12 months, with the Reserve Bank meeting on Tuesday to make its final cash rate decision for 2022.
While a pause is possible, most experts anticipate a 25 basis point lift.
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