A Bank of New Zealand (BNZ) consumer survey show confidence has risen to high levels, with nearly half expecting the economy to be in better shape in a year.
The monthly BNZ-Nine Rewards Consumer Trends Survey found a net 47 percent of those surveyed expected the economy to be in better shape in a year, up from a net 30 percent in late November.
BNZ chief economist Tony Alexander said such strong levels of confidence supported widespread forecasts for strong growth in the New Zealand economy this year.
"The confidence about the economy is very high," Mr Alexander said.
"That's consistent with results from other monthly and quarterly surveys we've seen released over the past couple of months showing that people are buying into the story of an improvement in the overall economy.
"Perhaps because they can see this improvement in the labour market, it gives greater validity to their high confidence, which one would expect to feed through into higher retail spending and also give some extra strength, eventually, to the housing market as well."
However, spending plans were well down on the last survey, with only 4 percent planning to spend more than usual compared with 47 percent in the late November survey.
"Clearly there's a Christmas element which has gone through there, and we don't read too much into that result," Mr Alexander said.