Plummeting consumer confidence in New Zealand has fuelled fears of a possible recession.

According to the Westpac McDermott Miller Consumer Confidence Index published on Wednesday, consumers have never been as hesitant in the survey’s 34 years.

In the second quarter, the index declined 13 points to just below 79, with confidence higher during the recession in the early 90s and the financial crisis of 2008/09, RNZ reports.

Infometrics principal economist Brad Olsen said of the survey’s results: "It sends a much stronger signal than - just a risk of a recession - it does say that odds on now, are a recession. It's a question of when, not if.

"The fact that it [the index] is at its lowest on record by a considerable margin as well - is grim reading for the economy.

"It's actually quite shocking just how bad households currently think things are and how bad households think things are going to get,” he added, going on to say that the findings rang "serious alarm bells".

"Realistically, it does start to say 'wow'. This has turned a corner, after two years of the pandemic, a lot of stimulus spending to keep the economy going, we are very much at a point where the economy looks like it's turning."

However, New Zealand’s Minister of Finance, Grant Robertson commented: "You know, the old story, you put 10 economists in a room and you get 13 opinions," he said.

"Clearly, the pressures are going on longer, because the war in Ukraine is going on longer. The supply chain situation is still difficult, although there are some improvements in that area. But this is going to be a tough 2022."

Furthermore, the Westpac index showed consumer confidence in New Zealand likely declined due to elevated living costs, including rising food and petrol prices and increasing mortgage rates.

The largest declines were reported in Southland, Auckland, Northland, Canterbury and Waikato.