Businesses are becoming a little more confident about the future

NZIER's latest Quarterly Survey of Business Opinion shows owners are less pessimistic about economic conditions in coming months.

Just five-percent expect deterioration, compared to 40-percent three months ago.

Almost a third have seen activity decline in the past three months, but only two-percent expect it in the next three.

The Institute of Economic Research says the results could make a case for another Official Cash Rate cut next week.