New Zealand firms aren't expecting a pickup in economic activity anytime soon and many plan to further reduce staff

The NZIER Quarterly Survey of Business Opinion shows a net 37 per cent report a decline in trading activity in the June quarter.

A net 25 per cent also expect weaker demand in the next quarter.

Principal economist Christina Leung says a net 19 percent of businesses cut staff in the June quarter.

She warns a net 28 per cent of businesses plan to cut staff numbers in the next quarter as well - the weakest level since March 2009.