New Zealand PM Luxon not flustered by unflattering poll

New Zealand Prime Minister Chris Luxon says tough decisions and a dire economy are behind a historically bad poll for his government which shows they would lose office if an election were held today.

On Monday, TVNZ revealed a small deterioration in the vote for all three governing parties in Mr Luxon's right-leaning coalition, which formed in November last year.

Mr Luxon's National party fell from 38 per cent to 36, the ACT party dropped from 8 to 7 - the fourth straight time the libertarian party has dropped in polls - and Winston Peters' populist NZ First party was down from 6 to 4, which would have them out of parliament.

It is the first time in modern NZ history that a government has been less popular than the combined opposition parties, according to TVNZ, so early in a term.

It took Jacinda Ardern's Labour government five years to reach the same position, and seven years for the John Key and Helen Clark-led governments.

Given the coalition's poll slump has arrived after just five months, Mr Luxon's honeymoon with voters is over, if it ever began.

"What they're saying is that it's a pretty tough times for a Kiwi," Mr Luxon said of the poll.

"That's why they voted for a change in government. We're a government that's facing up to those tough choices that we need to make, we're not going to shy away from them.

"They want us as a government to rebuild the economy, lower the cost of living, grow the place and that's what we're here to do."

In its short time in office, the government has hit the brakes on a number of Labour programs, like world-first smoke free laws, industry-wide bargaining and clean car rebates.

It has also committed to a suite of government cuts, which it says will be reinvested in "frontline" government roles such as teachers and doctors, but as of this week has produced more than 3400 job losses.

The recession is also biting. The poll found Kiwis are increasingly downbeat about the economy, with 26 per cent feeling pessimistic about the outlook, up seven.

Finance Minister Nicola Willis said she was "relaxed about a poll two and a half years out from an election", while campaign chair Chris Bishop urged journalists "not to read too much into it".

Mr Luxon, a former executive who leads in a corporate style, has also endured personal setbacks.

He opted to pay back a parliamentary allowance when, bizarrely, Australian cricketer Usman Khawaja revealed he was not living in the official residence, and last week, sacked two underperforming ministers.

Just 23 per cent of New Zealanders name him as their preferred prime minister, though he beats opposition leader Chris Hipkins, on 16.

Mr Luxon said the poll wasn't cause to push pause on his government's agenda.

"We are 150 days into a three-year term turning around a six years of economic mismanagement," he said.

"We don't look at the polls, we're laser focused on getting things done.

"I listen to New Zealanders each and every day. I know what New Zealanders need us to do, which is to deliver for them."