Consumer confidence has given up a short-lived budget bounce to fall back into negative territory.

The widely-watched Westpac-Melbourne Institute Index of Consumer Sentiment dropped back 6.9 per cent in June to 95.3.

That is below the key 100-point level that indicates when optimists are evenly balanced with pessimists.

In May the index had posted its first positive reading since February, hitting 102.4 on consumers' initial reactions to the federal budget and a cut in the official cash rate to a fresh record low of 2 per cent by the Reserve Bank.

"With these factors now behind us, sentiment has reverted back to a level more reflective of broader concerns about the outlook for the Australian economy," noted Westpac senior economist Matthew Hassan in the report.

"At 95.3, the index is 1 per cent below its pre-budget level and the weakest read since the start of the year."

The survey shows economic news dominated people's attention over the past month, with 50 per cent recalling news in that area, 45 per cent recalling budget and taxation stories and just under a third recalling interest rates.

Matthew Hassan said the Commonwealth Treasury secretary's recent comments that Sydney and parts of Melbourne are in housing bubbles do seem to have dented sentiment towards the property market, albeit from very high levels.

"The index tracking views on 'time to buy a dwelling' declined 1.6 per cent in June, but is still 3.4 per cent above its pre-rate cut level in April," he observed.

"Expectations for prices showed a sharper weakening: the Westpac-Melbourne Institute House Price Expectations Index fell 8.5 per cent in June following a 3.2 per cent decline in May. At 134.9, the index remains in solidly positive territory, well above its long run average of 125, but the 11.4 per cent drop over the last two months marks a shift to a much less bullish view.

"Just over 53 per cent of respondents expect prices to rise over the next 12 months compared to 61 per cent in May and 63 per cent in April."

People assessed their current family finances as better than at the same point last year, but there was a deterioration in expectations for the year ahead, and concerns around job losses remained well above historical averages.