Business confidence is now the highest since Covid hit our shores.

ANZ's business outlook survey showed a strong bounce back of activity after the initial hit in April.

Across the economy, firms appear to be confident the second outbreak of Covid-19 in the community is well under control.

ANZ Chief Economist Sharon Zollner told Mike Hosking it's good to see the second lockdown didn't derail things any further, but there's still a long way to go.

"There's been enormous fiscal support through the wage subsidy that's about to roll off, and the loss of tourism won't be felt until summer."

LISTEN ABOVE