Australians are financially worse off now than they were 12 months ago and are bracing for an even tougher road ahead, according to the Sensis® Consumer Report released today.

The report, which is the latest barometer of consumer sentiment, interviewed 1,500 Australians nationwide from 1 to 31 August.

Report author Ms Christena Singh said Australians overall felt their financial position was worse off as a result of rising costs of living.

“More than one third of Australians say they are now in a worse financial position compared with 12 months ago.

“And the impact has been felt across all income groups.

“Nevertheless, there are more robust pockets of the economy where one in five say they are now better off than a year ago,” Ms Singh said.

Rising prices - including the general cost of living, petrol, mortgage and food - are the main reasons Australians feel their finances have deteriorated.

Earning more money is the major contributor to feeling better off.

Ms Singh added the cost of living was Australians’ number one concern, well above social issues including the environment, and the health and education systems.

“We are also seeing unemployment starting to creep in as a concern for Australians, particularly in New South Wales and Tasmania.

“Unemployment has not been on the nation’s radar for some time, but since May, it has risen more than any issue.”

Consumer confidence has also fallen further, with a record number of people now worried about their financial prospects for the year ahead.

Consumer confidence is down three percentage points to 32 per cent, approximately half the rate recorded in November last year.

Increased costs in recent months – including interest rates, inflation, cost of living and fuel – are the primary reasons Australians are worried about their finances. Other concerns include the economy, being on a pension and investments not going well.

Having a secure job and sufficient savings are the key reasons for being confident. Ms Singh noted the majority of Australians expected the economy to weaken further in the next 12 months.

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

Consumer confidence around the nation:

About Sensis

Sensis is Telstra's advertising business and Australia's leading directories information resource, helping Australians find, buy and sell. Sensis delivers innovative and integrated local search and digital marketing solutions via print, online, voice and mobile channels to connect Australians 24 hours a day, seven days a week. Sensis' powerful, multi-channel portfolio provides an unparalleled local information source incorporating the White Pages® and Yellow Pages® directories; the MediaSmart digital advertising business; the Whereis® digital mapping business; the Citysearch® entertainment and lifestyle website; the sensis.com.au search engine; the 1234 operator-assisted, premium voice information service; and the accommodation website gostay.com.au. Sensis is also a partner in some of China's most popular websites including real estate and home furnishings website, SouFun.com; auto websites Autohome.com and Che168.com; and digital devices websites IT168.com and PCPop.com.cn.