The economy seems to be stuck in second gear, according to the latest National Bank Business Outlook.
The bank, which is part of ANZ Banking Group, said a downward slide in business confidence had been arrested, but only marginally.
A net 15 per cent of respondents expect business conditions to improve over the year ahead, up from a net 13 per cent last month, the bank said.
Firms' own activity expectations - a more relevant indicator of economic momentum than confidence itself - nudged up.
A net 24 per cent of respondents expect more activity out of their business over the coming year.