Positivity is proving contagious - with business confidence at a nearly 14-year high

Think tank NZIER's latest Quarterly Survey of Business Opinion shows optimism is increasing.

The Reserve Bank closely monitors the survey of about 10-thousand firms - with a growing number saying activity's rising.

NZIER Deputy Chief Executive Christina Leung says recent interest rate falls are starting to flow through.

She says firms are finally starting to see it - which makes them feel the economy will improve over the coming year.