Confidence in Otago fell by 13 points to end at 104.4 on December 16.
The next lowest region is Waikato on 108.8 after an 11-point slide in the quarter.
Otago's neighbours, Canterbury and Southland, were well ahead of this region, with 116.9 points and 112.8 points respectively, although Canterbury's index lost 5.8 points and Southland lost 10.
Otago Chamber of Commerce chief executive John Christie said he would not have thought Otago would have been bottom of the rankings in consumer confidence.
However, he did concede that business closures and job losses within the region had taken their toll.
"We probably haven't seen the full impact yet of downsizing and job losses.
"But the news coming out now is optimistic, and should flow on to reasonable consumer confidence in the future."
As wealth went back into households, it should flow back into the wide community, he said.
Next year would be a "whole lot better" than 2009.
There could be some more closures and job losses, but that was the reality of the current economy, Mr Christie said.
Nationally, consumer confidence eased 3.4 points to 116.9.
Westpac chief economist Brendan O'Donovan said that by region, confidence had been hit the hardest in the secondary and rural areas with Otago, Waikato and Southland registering the biggest falls.
"That is somewhat surprising, given the large upward revision to Fonterra's dairy payout for the current season.
"Less surprising is that confidence is the highest in Auckland and Wellington, where gains in house prices have been strongest."
In the September quarter, consumers regardless of age, income group, gender or region were convinced that good times were on their way, and confidence soared to a four-year high as a result, Mr O'Donovan said.
In the last three months there had been a small adjustment in the extent of that euphoria, but overall confidence remained high, well above the long-run average.
At current levels, confidence is indicative of solid growth in consumer spending through the December quarter, Mr O'Donovan said.
He expected real consumer spending to grow by 1.3% in the December quarter, the strongest gain since the March 2007 quarter.
The latest data supported that view and should provide some relief to retailers.
By gender, males (120.1 points) were still more optimistic than females (113), although the gap between the two closed during the quarter.
By age, all groups recorded declines, although the decline was steepest in the 50-plus age group; the least optimistic group.
The survey confirmed the revised Reserve Bank forecasts for consumer spending.
On that basis, the data had few implications for monetary policy.
"We continue to anticipate an earlier start to the tightening cycle than the Reserve Bank with the first official cash rate hike in March 2010," Mr O'Donovan said.
