The eurozone debt crisis and slowing growth in the United States appear to be worrying New Zealand firms, with confidence tumbling to a seven-month low.
The BNZ Confidence survey shows a net 6.9% of respondents expect the economy to be in better shape in a year's time, compared with a net 36.3% in September.
It is the lowest reading since just after the February earthquake in Christchurch and is in contrast to other recent surveys which showed confidence was holding steady or even improving slightly.
BNZ chief economist Tony Alexander says people's attention may be on the Rugby World Cup, but suggests the caution might be linked to what people are hearing and seeing in terms of the continuing worries about Europe and the questionmarks over whether or not the US economy is going into another period of recession.
Mr Alexander says none of the respondents cited recent credit rating downgrades for New Zealand as a reason for their reduced confidence.
