This is at odds with reported wage growth of 5.4 for the year to December 2005.
We now expect the first interest rate cut to be October.
But other indicators suggested that consumers think that the good times are coming to an end.
While the fall in the headline confidence index number appears to be relatively small, the underlying tone to confidence is markedly weaker than the previous quarter.
We will be faced with a year and a half of virtually no growth in this economy. We should not have had interest rates ever getting to 7.25 percent. The monetary policy cycle is far too aggressive.
We are in spitting distance of recession, if not already sitting in it.
Overall, confidence is being pulled down by the squeeze from past tight monetary conditions, and the reality of facing the higher interest bill on our collective debt binge.
When the housing market goes, there will be little left to sustain the economy in the short-term because it will take time for the lower currency to benefit the economy.
This outcome (0.2 per cent growth) makes it more certain the Reserve Bank has finished lifting rates.
The first of those risks prompted the bank to tighten late last year when the housing market threatened to take off once more. However, it is the risk of a monetary policy-induced slump that looms larger.
The deterioration in the trade balance appears to be being arrested -- a lower currency and weaker domestic activity will go a long way to improving the current account situation, but it will take some time to show through.