Wellington  - Consumer confidence in New Zealand is at its lowest level since the recession of 1991, according to a survey reported Thursday.

The Westpac McDermott Miller consumer confidence index has fallen 15 points since March to 82, the third-lowest mark recorded in the survey's 20-year history.

Westpac Bank chief economist Brendan O'Donovan told the New Zealand Herald that consumers were "squealing" over the high cost of living, fuelled by rising food and petrol prices.

He said that consumer sentiment tended to reflect the state of the economy: "Right now we are sitting in a recession."

McDermott Miller managing director Richard Miller said that the survey found New Zealand consumers pessimistic in every region and socio-economic group, regardless of age or gender.

"The last time this occurred was in the early 1990s, when there was widespread unemployment and closures of industries arising from economic restructuring."

Annual inflation at 3.4 per cent is rising, but the current unemployment rate is down to 3.6 per cent, and analysts said the economic picture is not all gloomy.

Last month's budget announced tax cuts to come, the central bank has indicated it will cut its benchmark interest rate later this year from a record 8.25 per cent, and dairy farmers are riding a boom that will inject millions of dollars into New Zealand's economy. (dpa)