However, more Kiwis believe the country is in a worse place than a better one than a year ago.
On Monday - exactly a year since the October 14 election last year - TVNZ released its latest political polling, undertaken by Verian.
It found the three government parties were all polling one per cent lower than their election night result.
Mr Luxon's National party was on 37 per cent, libertarians ACT on eight, and New Zealand First on five.
NZ First's polling may concern the coalition given parties must win an electorate seat or poll least five per cent of the nationwide party vote to return MPs under New Zealand's mixed-member proportional system.
Labour polled 29 per cent - two per cent above its shocker 2023 result - with the Greens on 12 and the Maori Party on four.
Replicated in parliamentary seats, the poll would see the coalition earn a second term with 63 seats and a narrow majority.
Mr Luxon continues to lead as preferred prime minister - as incumbents almost always do - but doubts linger over his poll performance since winning office.
ACT leader David Seymour blamed the Ardern government for NZ's current economic situation. (Mark Coote/AAP PHOTOS)
Under Sir John Key, the National party roared above 50 per cent popularity after their first year in office, while Dame Jacinda Ardern's Labour party also jumped by around eight per cent on the way to a second-term landslide.
Mr Luxon said the poll results are to be expected given New Zealand's recessionary environment and lingering cost of living challenges.
"I think New Zealanders understand we're a government that's inherited a hell of a mess," he told TVNZ.
"They can see that I've actually got this coalition government working incredibly well. It's very focused, and they know that there are better days ahead of us."
The poll comes after the government announced plans to reel in costs to build Dunedin a new hospital, prompting tens of thousands to protest.
Casey Costello, a first-time NZ First minister, is also embroiled in corruption allegations over advice she took to cabinet around a tax break for heated tobacco products.
ACT leader David Seymour said given the circumstances he was pleased to be in an election-winning position.
"The fact that we're ahead and these economic conditions speaks to just how bad the economic management of the last government was," he said.
In another poll result released by the national broadcaster, 40 per cent of Kiwis believe the country is in worse shape than a year ago, with 30 per cent saying New Zealand is better off.
Former Labour cabinet minister Michael Wood, who lost his seat in the swing to the right, told TVNZ that Kiwis had failed to warm to the former Air New Zealand chief executive.
"It's different to previous governments ... you're seeing people already expressing doubts about the Luxon government," he said.
Sir John said all politicians "want to be loved" but Mr Luxon was on a track to gaining something more valuable from Kiwis respect.
"They will respect Chris Luxon because I think they respect the fact he is making tough decisions," he told TVNZ.
"They don't have an election today, they have an election in 2026.
"They are on the right track and Chris Luxon is proving as prime minister he's an action man. He'll get things done."
LATEST NZ POLITICAL POLL
National - 37 per cent (down 1 from last poll in August)
Labour - 29 (down 1)
Greens - 12 (up 1)
ACT - 8 (up 1)
NZ First - 5 (down 1)
Maori Party - 4 (steady)
TOP - 3 (up 2)
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