NSW consumers are feeling more confident because of a pick up in the jobs market, stable governance, and lower interest rates, the state government says.

NSW Treasurer Mike Baird said a survey out on Wednesday showed consumers across the state were almost 17 per cent more confident than a year ago, and 6.7 per cent more upbeat than the decade average.

He said the Westpac/Melbourne Institute Consumer Sentiment Index for March showed a 2.1 per cent increase in NSW, following a rise of 6.7 per cent last month.

Mr Baird said the positive data came after "challenging economic conditions over the past year".

"It appears that the combination of a stronger jobs market, a stable government and lower interest rates, is making the people of NSW feel a lot more positive," Mr Baird said in a statement.

"This is good for the economy and good for the state."

He said the biggest pick up in confidence related to the state's five-year economic outlook.

"This indicates consumers are feeling increasingly confident about the long-term future in NSW," he said.