Business confidence picked up slightly in the National Bank's latest monthly survey, albeit to levels that are weak by the standards of the past three years.
Thirty per cent of respondents expect general business conditions to improve over the year ahead, while 15 per cent expect them to get worse.
The resulting net 15 per cent positive is up from a net 13 per cent in the June survey, but still the second-weakest reading this year and down from a net 38 per cent peak in April.
Firms' expectations for their own activity - which they are more authoritative about - crept up to a net 24 per cent positive from a net 21 per cent in June, but that is still well down from a net 39 per cent in March.
"Employment and investment intentions nudged higher," said the bank's chief economist, Cameron Bagrie. "However, somewhat perplexingly, these positive expectations are being formulated at a time when profit expectations are being pared back."