An economist has claimed that uncertainty shown by the Companies concerning the pace of the economic recovery is serving as a base for plunging business confidence.

The BNZ's confidence survey for this month reported to poll nearly 565 respondents last week. The survey claimed that net 1% speculated the economy to further deteriorate in the approaching time. The view reflected on a significant change compared with a net two per cent hoping to witness improvement in early July.

"However, as with last month, the tone of the comments submitted by respondents is decidedly downbeat with a number indicating things appear worse than a few months ago, that customers are thin on the ground, and that cost pressures remain quite intense", posted BNZ Chief Economist Tony Alexander.

In addition, he highlighted on Monday that views posted were above the net of 17% pessimistic average level recorded since 2005.

However, the plunge in consumer confidence is not very steep. Besides, prices for dairy products have lowered and the Official Cash Rate has also been relaxed.

Moreover, the higher than expected unemployment figures posted last week seem to serve as a base for controlling the consumer confidence.