Consumer confidence has tumbled to its lowest level in four years in the wake of the Reserve Bank's most recent cut in official interest rates and growing concerns about the state of the Australian economy.

Westpac's closely watched measure of consumer sentiment fell by 5.5 per cent in October to sit 8.6 per cent lower than a year ago. Confidence has fallen 8.4 per cent since the RBA started cutting rates in June.

Consumer sentiment has tumbled to a four year low in the wake of the RBA's cut in interest rates. Credit:Penny Stephens

Consumers are increasingly worried about the nation's short and long term economic fortunes. There was a 6 per cent drop in expectations about the economy over the next 12 months while sentiment about the economy over the next 5 years fell by 9.1 per cent.

The only positive was expectations about house prices with this jumping by 5.9 per cent to be 54.1 per cent higher since May. Much of that is being driven by consumers in Sydney and Melbourne.