Business confidence is feeling the effects of an autumn chill, dropping for the third month in a row.
The latest ANZ New Zealand Business Outlook survey showed confidence in April was down 8 points from March and across every sector.
When it came to predicting their own activity, the survey showed there were widespread falls, with retail leading the way.
And when businesses were asked how trading compared to a year ago, 20 percent said it had declined, with "double-digit falls in every sector except construction".
The three-month average showed construction has experienced the greatest fall compared to a year ago.
However the weakness is not translating to lower inflation expectations. Most firms expect costs to increase which will mean prices go up as well.
ANZ's chief economist Sharon Zollner said possible culprits behind increasing costs are the rising oil price caused by tensions in the Middle East and a drop in the New Zealand dollar.
Inflation still remains along way above the Reserve Bank's target band of 1 to 3 percent and domestic inflation pressures have eased more slowly than the Reserve Bank expected.
The Reserve Bank will be interested in businesses' inflation expectations which are still at 3.8 percent for the next year. Inflation is currently at 4 percent.
The shape of the financial system and commentary on inflation will be revealed on Wednesday when the Reserve Bank releases its six-monthly Financial Stability Report.
