Business confidence in New Zealand declined sharply in June, the latest survey from ANZ revealed on Monday - falling from 53.5 in May to 42.8 in June.
Analysts suggest that the Reserve Bank of New Zealand's actions to raise interest rates are primarily responsible for the decline.
The activity outlook for June came in with a score of 45.8, down from 51.0 in the previous month.
"Growth signals remain strong and inflation messages are waning: a good mix for keeping the OCR on the low side and the economy on a roll," said ANZ Chief Economist Cameron Bagrie.
