"The recent pick-up in business confidence reflects the underlying strength in the economy and should continue as the export recovery gathers momentum," Finance Minister Michael Cullen said today.

Dr Cullen was commenting on the National Bank's July survey showing a net 7 percent of firms are now optimistic about their own business prospects over the next 12 months.

"Not surprisingly, confidence is highest in agriculture and manufacturing both of which are big exporters. It is lowest in the construction sector.

"A net 36 percent still expect general business conditions to deteriorate over the coming year. Obviously that is a bad result. However it represents a 20-point improvement since last month.

"I would expect that trend to continue with continuing export growth and as the rebound in exports flows through to the rest of the economy," Dr Cullen said.

ENDS

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