• Winston Peters

The NZ Institute of Economic Research's latest report, which shows a rise in business confidence in the September quarter, is yet more positive news, said Treasurer Winston Peters.

"It is particularly encouraging to see business confidence improve across all sectors. Significantly, financial service firms are very positive and expect a fall in interest rates over the year and an upswing in investment activity.

"It is noted that the easing exchange rate has also been reflected in an improved export performance by manufacturers which is indeed welcome news. It is also pleasing to see optimism amongst Australian manufacturers remaining firmly positive, which augurs well for our manufactured exports," said Mr Peters.

Whilst the survey says businesses are only moderately optimistic, it does state that "the survey results confirm that confidence has finally turned the corner."

It is significant that most survey responses were completed before the release of the June quarter GDP figures, which were well above market expectations.

"The NZIER survey is in line with previous National Bank surveys which have shown business confidence on the rise for the past three months.

"In effect, businesses are saying that the Government's sound economic and fiscal policies are contributing to steady and sustainable growth," said Mr Peters.