A net 35 per cent expect their own activity to increase over the next 12 months. That is down one point from April or down 6 points when seasonally adjusted.
The decline was within the bounds of normal monthly volatility and the level was consistent with businesses getting on with it, Bagrie said.
Investment intentions eased, with a net 12 per cent expecting to invest more in plant, equipment and buildings against a net 18 per cent in April.
Employment intentions and profit expectations held steady, however, at a net 8 per cent and a net 15 per cent positive respectively, though both are off their peaks in March.
Construction expectations, both residential and commercial, held up at elevated levels. Construction was the only sector to buck the general easing in confidence.
Export intentions were "pretty horrible", Bagrie said, dropping eight points to a net 15 per cent positive, the lowest level since July 2009 and well below historical averages.
Much of the dollar's recent decline would have come after the survey responses were completed, he said.
"In the interim the fall in export intentions appears to reflect growing concern over the global economy, and easing commodity prices. This is not the stuff of which an export-led recovery is made."
All things considered, there was potential for confidence to have taken a bigger knock, Bagrie said.
"There are some cautious tones but given the typical movement we see in the survey from month to month it is not telling us a massive turning point has been reached," he said.
"If you strip out the seasonal factor this is the second month of decline. Some of that may be the global scene but it may also be a bit of reality setting in, because there has been a mismatch between expectations and reality for some time."
BUSINESS OUTLOOK SURVEY
* Net 27 per cent expect general business conditions to improve.
* Net 35 per cent expect their own activity to increase.
* Net 12 per cent expect to invest more in plant, equipment and buildings.
