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flag New Zealand businesses are more optimistic about economic improvement, though challenges persist.

flag New Zealand businesses show improved confidence as 9% expect economic improvement, up from 4% last quarter. flag Despite cautious hiring and investment, the construction, retail, and services sectors are optimistic, driven by lower mortgage rates and a weaker NZ dollar supporting exports. flag However, high costs and weak pricing power continue to challenge profitability. flag The survey suggests the recent economic downturn may persist, but a potential 50 basis point interest rate cut is likely.

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