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The latest NZIER Quarterly Survey of Business Opinion (QSBO) shows business confidence has improved, reflecting a pick-up in demand over the September quarter. A net 1 percent of businesses reported an increase in own trading activity – a turnaround from the net 37 percent reporting a decline in the previous quarter. This result supports our expectations of a V-shaped recovery in economic activity, as the New Zealand economy responds to the unprecedented amount of stimulus measures implemented by the Government and Reserve Bank. Nonetheless, businesses on the whole are still feeling downbeat, but this pessimism is reducing with a net 39 percent of businesses expecting a deterioration in general economic conditions over the coming months – lower than the 58 percent in the previous quarter.
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