The latest Curtin Business School-CCI Survey of Consumer Confidence has found consumer confidence has dropped to levels previously seen during the height of the global economic crisis.
The survey sought the views of more than 400 people across the state.
It found just only 38 per cent expected WA's economic conditions to get better over the next three months.
That's down from almost half earlier in the year.
According to the survey, long term consumer confidence has also taken a hit with only 60 per cent of respondents expecting an improvement in the strength of the economy in the year ahead.
The CCI's chief economist, John Nicolaou said the confidence of low income earners had been hardest hit.
"28 per cent of people earning less than $60,000 a year expect economic conditions to improve by September, down from nearly half in March," he said in a statement.
Respondents to the survey were also asked about the impact of rising interest rates on their household budget, and their expectations for the cash rate into the future.
Almost 40 per cent thought the rises have negatively impacted their personal finances.
Middle income earners have been hard hit, with more than half saying that they are worse off.
90 per cent of respondents expected interest rates to go up again over the next year.
