Richard Uechtritz, CEO of JB Hi-Fi said: "The recent Westpac consumer confidence report is encouraging for retailers and the consumer electronics industry. We are confident that the market will stay stable and we are confident in the numbers that we have forecast.

He, however, admitted that the flat screen market was getting extremely competitive and margin-thin.

The Westpac-Melbourne Institute Index of Consumer Sentiment reported a 9.1 percent fall from February to March. The Index recorded a three-month fall of 21.2 percent, making it the most significant decline in consumer confidence since the Index began in 1975.

Consumer confidence levels dropped across all five component indices, including household spending. The Index posted a 10.9 percent drop in consumers who believe now is a good time to buy major household items.

Analysts including Westpac's Chief Economist Bill Evans are now predicting a sigh of relief for the Reserve Bank, expecting interest rates to remain stable in the near future.