Consumer confidence in Western Australia has plunged because of political uncertainty at the federal level and following a belt-tightening state budget, a survey shows.

Just 10 per cent of consumers expect the economy to strengthen in the next three months compared to 33 per cent who expect it to weaken, the latest survey by the Chamber of Commerce and Industry of WA and Curtin Business School shows.

It also showed 39 per cent of respondents expect the economy to deteriorate over the next 12 months compared to 25 per cent who anticipate it will strengthen.

While living costs were again a major factor weighing on consumer sentiment, the political environment has emerged in recent months as a key concern for 47 per cent of WA consumers.

“The change in prime minister, the state budget, a raft of policy and legislative changes in the lead-up to the federal election campaign, have all contributed to the uncertain political environment this quarter,” CCI chief economist John Nicolaou said.

“This has seen consumers become progressively more pessimistic about the future.”

Respondents felt their personal financial position was better than last year and believed housing affordability had improved, but continued to take a more cautious approach to spending and investment decisions.

“A clear result from the federal election will hopefully be the circuit breaker that is needed to restore confidence and prevent any further softening in economic activity,” Nicolaou said.

Global economic news was also identified by 42 per cent of respondents as a major factor influencing consumer sentiment.

AAP