Expectations for their own circumstances in the year ahead were at their lowest outside of actual recession, he said when releasing the latest Westpac McDermott Miller consumer confidence index.
The groups benefiting from the Government's Families Package, which took effect from July 1, did report some improvements in their own circumstances.
But they appeared to have been outweighed by other concerns in most consumers' minds.
The index fell 5.1 points in September, taking it to 103.5, the lowest level since September 2012.
The slowdown in the housing market and rising fuel prices were potential factors behind the drop in confidence, Mr Stephens said.
Those factors had been felt most acutely in the Auckland region, which had a particularly sharp drop in confidence.
''It may be consumers are starting to feel a real impact from the economic slowdown that began in 2017. Or it may just be consumers are worried by what they are hearing about weak business confidence.''
Current conditions improved for the old and young, but fell for those in between, he said.
Beyond the boost from the Families Package, all age groups expected a decline in their own circumstances and the wider economy in the coming year.
Expectations for the next five years were only slightly weaker, but the measure was already at low levels and had been for some time, Mr Stephens said.
The quarterly survey asks households what they would do if they received a $10,000 windfall.
The September survey continued the long-running downward trend in households' inclination to save.
''We'll be interested to see how this changes over time as the Government introduces new polices that could discourage households from relying on housing as a savings vehicle.''
