Survey shows business confidence on the rise

The see-sawing state of New Zealand's business confidence continues with the latest BNZ survey ending on an upward note.

The third survey for the year shows sentiment improving again.

Thirty-four percent of respondents expecting the economy to improve over the coming year.

Sectors showing signs of improvement include residential real estate. Manufacturing looks to be in reasonable shape and agriculture is good, although there's caution regarding the next seasonâ s dairy payout.

However the Christchurch rebuild is still patchy, and retailers are remain cautious.

The BNZ says the results are consistent with an improving New Zealand economy.

The New Zealand manufacturing sector appears to be benefiting from economic conditions across the trench.

BNZ chief economist Tony Alexander says at the margins, Australian manufacturers struggling with the constantly high dollar, are casting their eyes towards us.

Mr Alexander says there are lots of reasons for Australian exporters to move here - the Aussie dollar's been high for a long time, wages are lower here, and some may be seeking entry to China through our Free Trade Agreement.

"You know they're fairly despondent over there quite frankly in Australia, it's either corruption or it's some sort of building scheme that's gone wrong or it's a loss of trust in the Australian Labor party."

Mr Alexander says parts of Queensland and Western Australia are still booming thanks to mineral exports, but other sectors, especially retailing, construction and tourism, are feeling the pinch.

He says mining is still going great guns but many other sectors, particularly exports, are finding it difficult - and moving to New Zealand has its attractions.

"You get a far better exchange rate for exporting to your other markets, you get a far lower wage and non-wage labour costs there. You get a free trade agreement with China (which) will be relevant for some."

He says he expects that small trickle to continue.

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