Consumer confidence has fallen at the fastest rate since 2008 after the Abbott government delivered its first budget last week and has dropped a sharp 14 per cent in the past four weeks.

The ANZ-Roy Morgan Consumer Confidence report – the first of first of its kind released post budget – has forecast households will rein in spending, with most people believing they will be worse off than they were a year ago during the depths of the Labor's leadership crisis.

Treasurer Joe Hockey delivers his first budget last week. Credit:Andrew Meares

The report follows economists last week predicting that the government's tough budget could drive confidence to recession levels and delay further interest rate hikes until late next year.