The fall in New Zealand consumer confidence has added to signs that the economy's recovery will be gradual. An index compiled by Roy Morgan Research and ANZ National Bank Ltd. depicted that Confidence fell 7.8 to 123.6 .

Wellington-based ANZ said, "The lack of conviction in regard to current conditions suggests consumers remain cautious in regard to spending".

The index of current conditions fell to 100 from 110, and nation's jobless rate rose to a 10-year high of 7.3%.

In a poll of 1,047 people, some consumers felt that they were worse off than a year earlier, others thought that it was a good time to buy a major household item.

But the ANZ Roy Morgan Consumer Confidence survey, hopes that the Consumers' confidence about current and future economic conditions remain positive.

"Faced with a rising unemployment rate and rapidly softening housing market it is perhaps of little surprise to see confidence ease. And we need to bear in mind that January did record the largest lift in the history of the survey," ANZ said.