Confidence in the economic recovery seems to be slipping, a survey shows.
BNZ chief economist Tony Alexander said there had been much talk of economic recovery not translating into improved conditions yet for many firms.
The latest BNZ confidence survey showed confidence had slipped slightly in early June, to a net 26% of respondents being positive about the economy in the coming year.
That reading was down from 34% in May and a peak of 56% in September.
That earlier level had reflected more of a "sigh of relief" regarding the world economy not collapsing than actual expectations of the New Zealand economy soaring, he said.
Businesses reported few cost or resource supply pressures but noted there were signs of improvement in several areas.
"But compared with previous surveys, this month there was somewhat more cynicism regarding the strength of the recovery.
Very few expressions of concern were made about the Reserve Bank's increase in the official cash rate last week but many respondents note finance remains difficult to get."
Residential real estate sector activity appeared "quite flat".
There was little evidence of a flood of investors looking to unload less cash flow attractive properties.
Buyers were "extremely picky" and many agents reported only vendors with realistically priced and well-presented properties could reasonably expect a quick sale, Mr Alexander said.
The survey was finalised on June 11.
There were 549 respondents, the highest number since 547 responded on October 2, last year.
