Latest Quarterly Survey of Business Opinion from the New Zealand Institute of Economic Research has suggested that net 31% of firms are optimistic about the outlook for the immediate future, a noticeable deviation, as compared to net 11% pessimism, observed during the March survey.

The survey has also suggested an improving profitability among small and medium businesses, with larger firms reporting tougher trading, a reversal from several previous surveys, where the hardest times were being experienced by smaller enterprises.

A net 22% of firms across the country had reported a less satisfactory business year and indicated overall ongoing weakness of economic conditions whereas the overall expected profitability in the quarter ahead can be considered better, with just 1% negative expectations.

Commenting on the present market scenario, the Chief Executive of NZIER, Jean Pierre, said that these conditions indicate some modest economic growth. Additionally, the manufacturers are hoping some ease in export sales.

"The conditions point to some modest economic growth. There's lots of confidence out there. Precisely where that comes from is uncertain”, said NZIER's Chief Executive Jean Pierre de Raad. “There are still some signs in other indicators that all is not well, particularly the employment figures' performance over the last quarter”.