WA consumers remain uncertain about the short term prospects for the local economy, according to the latest Curtin Business School-CCI Survey of Consumer Confidence.
Fewer than one in three of the 400 people surveyed believe that economic conditions in WA will improve over the next three months.
This compares to nearly 40 per cent that expected conditions to improve last quarter.
CCI chief economist John Nicolaou blamed fears about interest rate rises and uncertainty about local economic conditions for the fall.
He said the drop in consumer sentiment was greatest among middle-income earners and young people.
"Despite the short term uncertainty, consumers remain optimistic about the longer term prospects for the local economy," Mr Nicolaou said.
"Nearly 60 per cent expect the economy to ramp up over the next year."
The survey found there has been an impressive rebound in the attitudes of people towards buying a home.
"Nearly one in three respondents believe it is a good time to enter the property market, up from 22 per cent in June.
The survey also asked respondents about their satisfaction with their current job.
"Just over half were satisfied with their current working hours, while nearly a quarter would like to work more hours," said Mr Nicolaou.
The majority of people surveyed were not interested in moving for work.