Hopes of a pick up in economic activity by the end of what's expected to be a weak year

NZIER data shows 24 percent of businesses surveyed in the last quarter, expect the general economic outlook to worsen in the coming months.

Meanwhile, ASB expects the unemployment rate to move close to five percent, and inflation to cool at a slower pace than expected.

Senior economist Mark Smith says there's still weakness to come, but it should start to bounce back by the end of the year.

He says cost of living pressures should start to ease then, and there could also be a pick up in global economic activity.