New Zealand business confidence fell 2 points in August to 54 from 56 last month, while expected own activity eased 1 point to 48 from 49 a month ago, according to a report by ANZ released on Monday.
Reported past activity was up another 6 points to 16, the most "encouraging" result this month, from 10 in July, driven by the lift in the services sector.
The lift in past activity suggests the bounce-back of the economy is already underway, ANZ said.
Inflation indicators were mixed, with inflation expectations up to 3.26% from 3.14%, and more firms are expecting cost increases and to raise their own prices.
Meanwhile, wage intention indicators are currently noteworthy. While the size of expected wage increases is modest, the net proportion of firms expecting to give these increases has been volatile, moving consistently in the opposite direction to oil prices in recent months.
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