Sharon Zollner. Photo: RNZ / DOM THOMAS
Businesses have held onto their new year optimism, with firms a touch more positive about their own prospects and further signs inflation pressures and expectations are easing slowly.
ANZ Bank's February survey (ANZBO) showed headline confidence falling two points to a net 35 percent, but companies' own outlook rising four points to a net 30 percent.
Chief economist Sharon Zollner said the results remain a mixed bag, with forward looking indicators such as exports, profits, hiring, and investment expectations all improving, suggesting low but positive growth.
"The ANZBO continues to portray a patchy economy, with green shoots in some areas, but ongoing challenges in others."
Inflation expectations edged down to 4.03 percent, but nearly half of firms still expected to raise their prices.
"Cost expectations and pricing intentions were little changed and are clearly still far too high and going broadly sideways."
Manufacturing businesses were the most upbeat, followed by construction, which matched a lift in residential construction investment.
Shipping delays and rising transport costs caused by the Red Sea attacks and drought in Panama were seen as "concerning".
Zollner remained sceptical whether the Reserve Bank had done enough to get inflation fully under control.
"Certainly, this survey doesn't suggest the economy is rolling over or that inflation has been beaten.
"We continue to think there's a high chance that forthcoming data will show more work needs to be done to return inflation to target in an acceptable time frame. As the adage goes, time will tell."