Further evidence of plummeting consumer confidence comes with a report showing a record number of people are worried about their financial prospects for the year ahead.

The latest Sensis Consumer Report, released on Tuesday, also shows Australians believe they are financially worse off than they were 12 months ago, and are bracing for even tougher times ahead.

A rise in the general cost of living and higher interest rates were the main reasons Australians felt their financial position had deteriorated.

The report surveyed 1,500 Australians nationwide throughout August before last week's interest rate cut, which would be expected to have yielded a boost in consumer sentiment.

Cost of living pressures were the chief concern for Australians, considered more important than social issues, including the environment, health and education.

"We are also seeing unemployment starting to creep in as a concern for Australians, particularly in NSW and Tasmania," the report's author Christena Singh said.

"Unemployment has not been on the nation's radar for some time, but since May, it has risen more than any issue," she said.

Like others recently published, the report provides further evidence of a significant slump in consumer sentiment.

Opposition treasury spokesman Malcolm Turnbull says the report is further evidence of the damage done to the economy by Labor in the nine months since coming to power.

Consumer confidence, as measured by the Sensis Consumer Report, fell three percentage points to 32 per cent in three months to September - about half the rate recorded in November last year and a record low for the report.

"Kevin Rudd and Wayne Swan, by talking up inflation as a monster that is out of control for the last nine months, have contributed to this shattering of consumer confidence in Australia," Mr Turnbull told AAP.

"If Mr Rudd and Mr Swan had shown economic leadership, this collapse in confidence need not have been so severe."

"Australian households are now paying a heavy price for Mr Rudd and Mr Swan's reckless political strategy to talk down the economy in an effort to trash the economic reputation of the previous coalition government."

The Sensis report also found that most Australians expected the economy to weaken further during the next 12 months.

Four in 10 Australians believe the economy will be worse off in 12 months time, while only two in 10 believe it will be better.