Consumer worries are at their lowest level in almost three years, but concerns about the looming federal budget are mounting.
NAB's consumer anxiety index dropped to 60.4 points in the March quarter, its best reading since the second quarter of 2013.
The index has now fallen in three consecutive quarters, as a recovery in the non-mining sectors of the economy supports jobs growth.
But worries about the May federal budget have pushed government policy to the biggest contributor to overall consumer anxiety, alongside cost of living concerns.
Almost 27 per cent of respondents to NAB's survey rate their concerns about government policy as `high'.
"Overall, consumers are telling us they're less anxious about the state of the world," NAB chief economist Alan Oster said.
"But they continue to be focused on paying off debt and essential items like utilities, transport and groceries."
Consumers are less stressed about funding their retirement, health costs and job security - factors which drove the overall index lower in the March quarter.
"Improvements in the labour market have helped consumer spending gain momentum since late last year," Mr Oster said.
"We continue to expect moderate growth in consumer spending throughout 2016."
Consumers remain most anxious in South Australia, the Northern Territory and Western Australia, where higher stress related to government policy, cost of living and job security was recorded.
Women continue to be much more anxious than men, particularly those aged 30 to 49, who are now the most stressed age bracket, according to NAB's research.
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