Cautious Approach Understandable - Peters

A cautious approach to the economic outlook as reflected in the latest National Bank business survey was understandable but not permanent, Deputy Prime Minister and Treasurer Winston Peters said today.

"The survey shows business confidence in March has largely remained the same as in the previous month.

"The National Bank clearly recognises the self perpetuating nature of bad news stories and the necessity to look beyond the gloom, which is something I have been advocating for some time," Mr Peters said.

"The Bank also points out there is reason for cautious optimism with the removal of the superannuation surtax tomorrow, and the income tax cuts on 1 July.

"These factors combined with the AMP share float and the Government's careful fiscal management of the economy will contribute to an improving economic outlook.

"It's important for businesses not to be overly pessimistic during this time of uncertainty, which we will put behind us," Mr Peters said.