• Business confidence up 2 points to net 50 percent
• Own activity outlook 39 pct vs 41pct in July, but past activity shows weakness
• Firms still not inclined to hire, construction may still be losing jobs
• Inflation expectations ease a shade

Business confidence has risen for the third month in a row in ANZ's latest business outlook survey, but firms are still enduring tough trading conditions.

ANZ's chief economist Sharon Zollner said forward-looking indicators were a mixed bag, but measures of activity over the past year showed how tough it had been for businesses.

"Reported past activity - the best indicator of economic growth in the survey - eased further and remains negative for retail, construction and manufacturing.

"Reported past employment remains soft for every sector. The construction sector in particular, appears likely to be shedding jobs again," she said.

Wage growth over the past year fell to 2.1 percent, and future wage growth expectations also eased to 2.4 percent.

Zollner said responses after the Reserve Bank's recent interest rate cut and signal of more to come were slightly more upbeat in rate-sensitive sectors such as retail and construction.

"This month's survey is consistent with the RBNZ's updated view that the economy needs a little more support to head off downside risks.

"It's too early to judge the confidence impacts of this month's shift in stance, but our view is that it will shore up the recovery that is now underway."

She said with the Reserve Bank now more focused on growth over inflation, it would keep cutting interest rates until the economy showed clear signs of recovery.