New Zealand business confidence has improved for the fifth month in a row.
The National Bank's monthly business outlook showed a net 12.6% of companies expected their own business to improve in the next 12 months, compared with an 8.3% optimism level in June.
While firms still expect to shed staff, reduce investment and reap lower profits, figures suggest a lower level of pessimism.
National Bank chief economist Cameron Bagrie says the improved sentiment is very encouraging, though he warns that a high dollar could mean any return to growth is short-lived.
Mr Bagrie says a net 15% of firms expect credit to be more difficult to get in the next 12 months.
