Business confidence in NZ has improved - survey finds

A net 20.5 per cent of those surveyed expect worse times over the year ahead, which is an improvement from the net 43.2 per cent expecting worse times in last month's survey.

A net 4.7 per cent expect conditions for their own business to improve in the coming year whereas in the survey last month a net 8.2 per cent expected conditions for their own business to worsen over the coming year.

"The economic patient is starting to show signs of life," National Bank chief economist Cameron Bagrie said.

"We cannot stress the importance of confidence enough. It's not the key driver of wealth, but is critical for maintaining momentum," he said.

He said there had been a risk that caution among business people would be self-fulfilling.

"Improving confidence is the first critical step in seeing that spiral broken and help mitigate extreme swings in the cycle," he said.