Consumer confidence has bounced back, with the outlook at the strongest level in six months.
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The ANZ Roy Morgan Consumer Confidence index rose 4 points in November to about average levels.
While perceptions about current conditions eased 1 point to 121, there was a big bounce in the future conditions index, which rose 6 points to 117.
"Consumers are feeling pretty resilient," ANZ chief economist Sharon Zollner said.
Sharon Zollner, the chief economist for ANZ Bank in New Zealand. Photo: Supplied
"The proportion thinking it is a good time to buy a major household item is holding up well enough to suggest spenders aren't closing their wallets just yet."
A net 26 percent of consumers expected to be better off financially this time next year, with a net 7 percent expecting economic conditions to improve.
Confidence in Auckland rose 5 points to become the most confident region in the country, which was a marked contrast to business confidence.
Confidence in Wellington dropped 3 points to fall below Auckland, while Canterbury was the weakest.
Ms Zollner said the confidence was good for near-term economic growth, but a degree of prudence was warranted too.
Household debt had flattened off at very high levels of 167 percent of household disposable income.
"Any improvement from here will be a long, slow grind," she said.
"Given high debt levels, consumer retrenchment is certainly a risk that could exacerbate any slowdown, but it is unlikely to be the catalyst for such an event."