Today's ANZ report showed a net 9 per cent of the 1,000 people surveyed said they were better off now than a year ago versus a net 13 per cent in March. However, a net 33 per cent expect to be in a stronger financial position 12 months from now, compared to 32 per cent a month ago.
More people still see the economy improving this year although the level has eased, with a net 14 per cent predicting better times for the nation over the coming 12 months, compared to 21 per cent in March, while 15 per cent have an upbeat five-year outlook, down from 22 per cent.
Households were still optimistic about spending with a net 37 per cent saying now was a good time to buy a big-ticket item, down from 38 per cent in March. Annual inflation expectations rose to 4 per cent from 2.4 per cent in March, the first time it has hit that level in 17 months. House price inflation expectations for the next two years rose to 5.2 per cent from 4.6 per cent in March.
Data this week showed New Zealand consumer prices rose at their fastest annual pace in five-and-a-half years in the first quarter of 2017, further solidifying market expectations the central bank will be lifting rates sooner that it's forecasting.