According to a new survey, the business confidence has strengthened in the New Zealand economy in recent times as increasing number of businesses remain optimistic about prospects.

The New Zealand Institute of Economic Research's latest Quarterly Survey of Business Opinion showed that a net 31 per cent of the businesses said that they remain optimistic, which is the highest level recorded since March
2010 quarter, which the net confidence was at 33 per cent.

Head of New Zealand Institute of Economic Research Jean-Pierre de Raad said, "Businesses continue to be optimistic, similar to last quarter, and importantly they are acting on the optimism with investment and hiring, which had been missing previously in the recovery."

The data also showed that the total hiring intentions rose 9 per cent during the June quarter from 5 per cent during the previous three months. A net 10 per cent of the firms also said that they will invest in plant and machinery compared to 8 per cent in the quarter till March, 2013. The total domestic trading activity had fallen to 4 per cent from 10 per cent.

The country's gross domestic product is expected to rise by 2 per cent during the quarter.