Australian Prime Minister Kevin Rudd suffered a blow to his record popularity on Tuesday as pressure mounted on him to unveil another big economic stimulus and stop a slide into recession.

Rudd hinted at a second stimulus package to inject life into the flagging domestic economy and called for unity amid the worsening gloom, as a poll in the Australian newspaper showed support for his handling of the economic crisis was sinking.

"This is an unprecedented crisis that demands an unprecedented response," Rudd promised business leaders at his Sydney harbourside residence late on Monday.

"2009 is going to be a tough year. The impact will be big, but so will our response."

The government has announced $24 billion in spending since the global crisis hit Australia last September, including cash for families, pensioners and homebuyers, and $3.1 billion to improve ports, roads and communications.

But since then the global economy has deteriorated and most economists now expect the government will need to provide another round of fiscal stimulus, including perhaps accelerated tax cuts.

Rudd warned a slowing in China's economic growth to 6-7 percent from 9 percent when fourth-quarter growth data is released in coming days would hit Australia's economy harder than his government's December forecasts.

"Australia is not immune from these events, and difficult days lie ahead," Rudd said. China takes 15 percent of Australia's exports, mostly energy and resources.

The closely watched Newspoll showed conservatives rivals making ground on Rudd's centre-left Labor party, sitting at 46 points when votes were allocated to the two major parties, up 2 points but still 8 points behind the government on 54.

More critically, satisfaction with Rudd's handling of economic woes and other issues plummeted 7 points to 63, although well off a low of 56 in October. A separate Sky News Australia poll found 75 percent of respondents believed there was now a crisis of confidence in the $740 billion economy.

Reports this month said the government was thinking of accelerating large tax cuts planned for next year to bolster A$36 billion ($24 billion) in stimulatory spending since September.

Unemployment ticked up to 4.5 percent in December, the highest level in near two years, and some economists predicted it could hit 6 percent this year, and possibly as high as 9 percent.

Australia's independent central bank has already slashed 3 percentage points from its key cash rate, taking it to a six-year low of 4.25 percent, and markets are pricing in another cut to 3.5 percent at the bank's next meeting on Feb. 3. Treasurer Wayne Swan said the government, which faces re-election late next year after what economists predict to be a year-long downturn, was waiting until next month before deciding on additional stimulus spending.

"We've got more scope when it comes to fiscal policy," Swan told local radio in Adelaide, adding the government could decide to dip into deficit and risk a backlash from voters in a nation where voters view budget deficits with alarm.

"That would be the responsible thing to do. The irresponsible thing to do in that environment is not to act," Swan said.