Australia’s economy shrank by 0.5 per cent in the September quarter, its steepest decline since the 2008 global financial crisis.

Speaking to Fairfax Media, treasurer Scott Morrison branded the dramatic end to five continuous years of economic growth as "not just a reminder, not just a wake-up call, but a demand to support economic policies that drive investment and jobs".

But, Western Research Institute general manager Wendy Mason said there was no need to be overly concerned.

“While the economy has shrunk, it does not mean we are heading towards a recession,” she said.

“Experts are saying just because we’ve had one quarter [that has shrunk] it doesn’t necessarily mean you’ll have another.

“People should be interested, but not necessarily worried.”

Technically, there must be two negative quarters in a row for it to be defined as a recession. Australia’s last one was in early 1991.

Ms Mason said consumer spending, investment from business and jobs all influence Australia’s economy.

“We are in an economy that is influenced by commodities and with a rise in commodity prices we’ll be in a better position,” she said.

“In terms of this next quarter, there’s signs that it will be better because there’s a rise in commodity prices.”

Mortgage broker Laurie Parkes, from FrontRunner Financial Solutions, said confidence was everything when it comes to the economy and in Bathurst there was a lot of confidence.

“I spoke to a very well known builder who is already booked out for next year,” he said.

“I’ve never been so busy as a mortgage broker.

“The theme to me is it’s a pothole,” he said of Australia’s current economic situation.

Financial adviser David Fuller, from Spencer Fuller and Associates, said it was more important that people focus on their long-term strategies to achieve financial security than worrying about every financial and economic event, which can at times be negative.

“Having a long term approach to their wealth management is vital, not taking on undue levels of risk and not reacting to short-term events remain appropriate, regardless of what stage the economic cycle is in,” he said.

Ms Mason said people should be proactive and aware of their finances and how much they are spending.

“Ensure you’re managing your money, don’t let it manage you,” she said.

Mr Fuller said people should consider their income and growth.

“The value of your investments will change from time to time depending on whether the markets are positive or negative,” he said.

“People should be looking to ensure that their investments, whether that be in superannuation or outside of super, continue to meet their needs and that they are not taking on an undue level of risk.

“At least an annual review of their investments should be completed so that adjustments can be made if appropriate, with consideration to the economic and financial market outlook.”