Business sentiment has fallen to its lowest level in the year with firms cutting staff and investment amid weak demand and stalled growth.
The Institute of Economic Research's September quarter business survey shows a net 15 per cent of respondents think economic conditions will improve in coming months, compared to 26 per cent in the June survey.
A net 14 per cent of firms reported a fall in their own trading, an improvement on the previous quarter, but the number expecting a future improvement halved to 9 per cent.
Firms planned to keep cutting jobs and cut back on investment as they faced higher costs and are being forced to raise prices. Gyles Beckford is the RNZ's business editor.
Empty chairs in an office meeting room. Photo: Supplied/ Kenny Eliason
