The ANZ survey showed the economy was delivering ''reasonable profits'' to businesses and utilising more people in the labour force.
''But, yet again, something that should be seen as cause for optimism will be sneered upon by a central bank that can find no sign of its beloved inflation. Grinch among the festivities,'' BNZ senior economist Stephen Toplis said.
The ANZ survey and one put together by BNZ chief economist Tony Alexander showed strong business sentiment.
ANZ chief economist Cameron Bagrie said business confidence and own activity expectations by companies were broadly unchanged in August but stronger after seasonal adjusting.
Together with firms' elevated employment and investment intentions, the survey pointed to good times continuing for the economy.
However, pricing and inflation gauges remained soft.
Service sector firms remained the most optimistic and although the agriculture sector remained at the other end of the spectrum, it recorded the largest jump in confidence in the month, he said.
''The story is very robust when you dig a little deeper. After adjusting for seasonality, business confidence hit a 20-month high in August.''
Optimism firms felt about their own businesses jumped two points higher to 34% and own activity expectations rose to a 21-month high. It was a similar story of positivity across other elements, Mr Bagrie said.
The BNZ survey received 570 responses and the vast majority were positive.
BNZ chief economist Tony Alexander said respondents reported difficulties sourcing staff but little upward pressure on costs or selling prices outside of construction.
The sector was growing strongly, benefiting a wide range of businesses all over the country. Demand for commercial property space was strong and vacancies were falling. Residential real estate listing shortages continued nearly everywhere.
The strengthened loan-to-value requirements were having an impact but some investors were pooling resources and sourcing second-tier financing to get around the rule, he said.
Rents were slowly rising and tenant demand was firm.
In farming, dairying remained weak but with feelings the worst had passed.
Horticulture was strong, as was tourism, where capacity issues were becoming more important, Mr Alexander said.
The BNZ also asked in the quarterly survey if people felt happy, unhappy or indifferent house prices were rising. Of the 541 people answering the question, 186 said they were unhappy (34%), 166 said they were happy (31%) and 189% were indifferent (35%).
''One can say most people are not unhappy house prices are rising which is why politicians tread very carefully, generally, when they talk about what they would like to see house prices doing,'' Mr Alexander said.
He noted the trend in the housing measure was down and it was the first time there had been more people unhappy than happy about rising house prices since the question was first asked in 2013.
Mr Toplis said the growth was failing to generate significant inflation. Most people would be overjoyed but the Reserve Bank was unlikely to be amused.
Inflation expectations in the survey fell to 1.44% from 1.49% last month and remained well below the Reserve Bank's target band mid-point of 2%.
''It pains us we are even looking at the second decimal point but that's, unfortunately, what we are left do do in the current environment. Second decimal point or not, this data does not in any way suggest a gradual increase. Nor did the monthly drop in pricing intentions.''
He said the BNZ believed the central bank had things the wrong way around. Headline inflation might need to go up before expectations rose. Yet, headline inflation (at 0.4%) was still expected to fall further.
Assuming the Reserve Bank was true to its word, it surprised Mr Toplis financial markets had not yet fully priced a rate cut before the end of this year.
''As we have said multiple times before, it is not a rate cut we think the real economy needs but increasingly looks set to be one that inevitably will be delivered.''
