<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian consumer confidence has plunged, recording its sharpest monthly drop since early COVID, as rising fuel prices and a rate hike strain household budgets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Westpac-Melbourne Institute Consumer Sentiment Index fell 12.5 per cent from March to April – one of the sharpest drops since the pandemic began.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The index measures how families are faring financially compared with a year ago. </span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/virgin-australia-flags-reduced-capacity-as-fuel-cost-soars/ca1fec74-1b1f-4fb8-8949-55e5b359c8a4" rel="" target="" title="Virgin to cut flights, raise costs after $40 million fuel hit"><strong><span>Virgin to cut flights, raise costs after $40 million fuel hit</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It also gauges how people feel about their finances and the broader economy in the year ahead and over the next five years, and asks whether now feels like a good time to make a major purchase.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Every component declined, showing across-the-board weakness.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The nosedive comes as petrol prices surge in the wake of escalating tensions involving the US, Israel and Iran.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/consumer-confidence-index-covid-fuel-economy-spending/a5c40de7-bf31-4a4b-ade6-43f48375cfed" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>At the same time, a further 25-basis-point rate hike has compounded concerns about borrowing costs.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The shocks appear to have rattled confidence, with sentiment now hovering near historically weak levels. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-pakistan-proposes-second-round-of-us-iran-talks-as-standoff-deepens/efa648e5-b87f-42bc-ad00-90982eaa62cf" rel="" target="" title="Pakistan proposes second round of US-Iran talks as standoff deepens"><strong><span>Pakistan proposes second round of US-Iran talks as standoff deepens</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The latest reading points to a clear pullback in Australians' feelings about their finances.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The most pronounced declines were tied to current financial conditions, with the measure tracking households' feelings about their finances compared to a year ago falling 16.7 per cent – a level typically associated with periods of significant economic stress.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Fuel costs have played a major role, with petrol prices climbing to around $2.40 a litre in early April, jumping 37 cents since the March survey and up 77 cents since early February.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This is the biggest jump in the survey's history and draws comparisons to the 1970s oil shocks.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The data was collected after a temporary fuel excise cut took effect on April 1. This lowered prices by 12 cents per litre, but did little to slow the overall rise.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>