Despite the decline, many of the 1002 respondents believed it was still a good time to buy a major household item, that reading having eased only three points to a net 43%.
The monthly ANZ-Roy Morgan consumer confidence survey declined four points to 119.3 for May, weighed down by both consumer perceptions of the current conditions and future conditions, which fell the same number of points.
May's reading of 119.3 points was just below the historical average of 120. The neutral point is 100.
ANZ chief economist Sharon Zollner said in a statement that consumer confidence was holding up "pretty well" in the face of housing market softness in Auckland and Christchurch and a cooling economy more broadly.
"This resilience likely primarily reflects the strong labour market, and now, markedly lower mortgage rates," Mrs Zollner said.
She said a high proportion of respondents, a net 43%, still thought it was a good time to buy a major household item, which history suggested would support spending in the near term.
ANZ's composite index of consumer and business sentiment had started to lift off its lows, consistent with expectations economic growth would find a floor midyear, she said.
Earlier this week, ANZ said a net 32% of the 364 respondents to its business outlook survey expect general business conditions will deteriorate during the coming year, versus 37.5% in April. Regarding expectations for firms' own activity, a net 8.57 anticipated an improvement, compared with 7.1% a month earlier.
-Additional reporting from BusinessDesk
