Confidence among manufacturers and exporters about the year ahead has hit its highest level in over a year, although it is still in the negatives.
A survey of business conditions by the New Zealand Manufacturers and Exporters Association shows confidence levels rose to negative 17 in July, up 10 points from June.
That's the highest confidence level since February last year.
But sales are still in decline, falling 34% in July compared with the previous month.
Chief executive John Walley says he's cautious about reading too much into the rise.
He hopes business conditions will continue to improve for manufacturers and exporters, but says this depends in part on the New Zealand currency.