New Zealand business owners are feeling better about the state of the domestic economy, according to a recent survey.

The Bank of New Zealand monthly confidence survey for August reports that the net proportion of respondents expecting the economy to improve in the coming year has improved from –44 per cent in July to –12 per cent in August, the best reading since November 2007.

Several factors contributed to the rising confidence, including: falling petrol prices and interest rates, with the Reserve Bank of New Zealand emphasising that further cuts will continue; 1.3 per cent jobs growth over the June quarter; and average commodity export prices hitting a record level in July.

The report noted that the export and import sectors could expect a boost in the coming months and that long-term export prospects also look set to improve.

Retailing and housing are expected to remain weak, with the unemployment rate heading to 5 per cent.

For further information visit the Bank of New Zealand website.