The ANZ-Roy Morgan Consumer Confidence Index rose from 117.7 in August to 121 this month.
The seasonally-adjusted estimate rose three points to 125, which Mr Bagrie said was the fourth consecutive increase and the highest reading since January.
"There is therefore more blush to the increase than spring pollination alone."
A net 31% of respondents expected to be better off financially in 12 months’ time, up six points on the previous month.
Net optimism regarding the short-term economic outlook lifted from 5 to 12. Confidence regarding the long-term economic outlook increased from 10 to 14, he said.
Concurrent spending indicators were largely unchanged and continued to flag solid spending prospects ahead.
A net 11% felt better off compared to a year ago, unchanged on last month’s reading.
Consumers’ enthusiasm to buy a major household item continued to thrive, at a net 48%.
The economy continued to thrive and it was of little surprise to see consumer confidence growing, Mr Bagrie said.
Annual gross domestic product growth had accelerated to 3.6% and the unemployment rate had fallen to 5.1%.
House prices had a rosy tint and dairy prices were improving.
There were still cash-flow pressures in dairying but less negative pressure was an improvement, he said.
While a strong New Zealand dollar might be a negative for exporters, it was ensuring cheaper prices for consumers.
"Our confidence composite gauge — which combines business and consumer sentiment into one gauge — continues to flag a solid-to-strong pace of GDP growth over the coming months. Four percent real GDP growth is in the prospect."
At that pace, the economy would eat into spare resources.
Skill shortages would become an increasing challenge for business but that was a better problem to have than insufficient sales and it should push wages higher, another positive for consumers, he said.
House price expectations hit a new high of 6.3% in the latest confidence index.
Last month’s moderation in house expectations in Auckland was short-lived.
Auckland expectations moved from 8.4% in July to 5.5% in August and back to 7.1% this month.
House price expectations in Canterbury, languishing of late compared to the rest of the country, were showing signs of improvement, as they rose from 3.7% to 6%.
However, house prices were not a win for all, Mr Bagrie said.
Confidence in the 25-34 age bracket (first-home buyer heartland) continued to seesaw.
As house-price expectations rose, their confidence in current conditions fell.
At a glance
• Confidence rises in September
• People feel better off financially
• House price expectations rise
• Economy expected to continue growing
