The latest survey conducted by Westpac Banking Corp. and McDermott Miller Ltd establishes increase in customer confidence level in New Zealand led by record low interest rates and rising house prices in the country. The country is somewhat coming out of the adverse impact of global financial crisis, with the economy showing signs of recovery.

The data released today in Wellington shows optimists outnumber pessimists, with household sentiment index having jumped to 120.3 in the second quarter from its previous level of 106.0. This may further stimulate the economic growth of the country, adversely impacted by recession-like conditions across the globe.

Donna Purdue, an economist at Westpac in Wellington, said: "History tells us that when confidence rises, spending will follow. The hurdles facing the consumer may affect the timing and magnitude of the recovery in spending relative to previous recoveries, but they won't preclude it."

Purdue further said that job losses will decline in future, as indicated by companies placing advertisements and surveys for hiring suitable staff.  She said: "However, back then consumers appeared to lack conviction that a recovery was on its way. Now, there is no doubt. Consumers, regardless of age, income group, gender, or region, are convinced that better times lie ahead."