Consumers remain down in the dumps ahead of another close interest rate decision that could pile even more pressure on households.
Confidence as measured by ANZ and Roy Morgan each week has returned a below-80 result for the 14th week in a row.
The index edged 0.4 points lower, with confidence about future financial conditions sinking to its lowest point since the COVID outbreak in March 2020.
Confidence among mortgage holders and renters has been trending lower than for those who own their homes outright, but last week homeowner sentiment fell 4.6 points.
For renters, confidence improved 3.2 points, and one point for those paying off their homes.
But an interest rate hike in June, which most observers agree is a possibility, could unwind these gains.
The Reserve Bank board is due to meet on Tuesday to discuss a mixed bag of data over the past month, including a stronger-than-expected monthly inflation reading.
Monthly inflation data, which can be volatile, came in at 6.8 per cent in April, up from 6.3 per cent in March.
The central bank will also weigh up signs of an easing but still robust jobs market, as well as fresh wage data, which revealed pay packets growing at 3.7 per cent in the March quarter.
Wage growth alone is unlikely to worry the RBA, which is comfortable with wages hitting a peak of four per cent annual growth.
But Governor Philip Lowe remains concerned about unit labour costs - the difference between wages growth and productivity growth.
Dr Lowe told a federal parliamentary hearing last week that sluggish productivity growth, not wages, was complicating the RBA's job of returning inflation to its two to three per cent target.
Some economists have also flagged the Fair Work Commission's minimum wage decision as a possible cause for concern that could push pay packets higher than the RBA can manage.
But Workplace Minister Tony Burke said the minimum wage rise of 8.6 per cent would not lead to higher inflation.
"Some people effectively (have wanted) to blame workers for any decision that the Reserve Bank might make," Mr Burke told ABC Radio.
"The people affected by the annual wage review are the people on the lowest incomes. They're the people relying on it."
Shadow treasurer Angus Taylor said the government needed to prioritise bringing down inflation.
"The sad reality is the Reserve Bank is under enormous pressure now to raise interest rates," he told ABC TV.
Balance of payments data released by the Australian Bureau of Statistics revealed a growing trade surplus in the March quarter.
The current account balance lifted by $581 million to $12.3 billion, with the higher trade surplus in part offset by a higher net primary income deficit.
Australia's trade surplus improved by $2 billion to hit $41.1 billion over the first quarter of 2023.
The net primary income deficit rose by $1.6 billion to $28.5 billion.
The balance on goods and services is expected to subtract 0.2 percentage points from economic growth in the March quarter.
Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said March quarter national accounts data, due on Wednesday, was shaping up to be stronger than earlier thought.
"This is a slightly stronger outcome than we expected, and means first-quarter growth may not be as gloomy as we initially expected," he said.
© AAP 2023