Global trade tensions and ongoing cost-of-living pressures have overshadowed the economic outlook

The Westpac-McDermott Miller Consumer Confidence Index dropped to below-average, with uncertainty greatest in Wellington.

But some positive signs are emerging, including a drop in interest rates.

Senior Economist Satish Ranchhod is optimistic about the coming year.

He says we should see economic growth and improvement in the labour market - but it's likely to be gradual.