New Zealand Institute of Economic Research (NZIER), published The Quarterly Survey of Business Opinion (QSBO) today. It showed that most of the businesses are cynical about the recovery of the economy in the near future. The surveys further show that the buoyancy of the businesses sustained for the two year.

But now, it has become difficult for the firms to sustain buoyancy, due to the less than expected rate of growth in the economy. Compared to June’s survey, the level of buoyancy has dropped from 26% to 9% in September 2010.

The chief economist Nick Tuffley and economist Christina Leung, who are working for ASB said that the buoyancy of the companies has dropped due to weak profitability, as the companies are finding it difficult to pass on rising costs to customers.

The general condition of the economy is reflected by the companies falling expectations regarding their own growth.

The rate of growth of the economy is slow than predicted by various economists and this has affected the rate of growth of the different companies. This, in turn is affecting the mood of confidence about the future of the rate of growth in near future.