Business confidence fell heavily in October with a net 42 per cent of respondents to the National Bank Business Outlook survey expecting business conditions to deteriorate in the coming year.
"That's a massive 44 point turnaround from September and is the largest one-month fall in the history ofthe survey," National Bank chief economist Cameron Bagrie said.
With the economy facing exceptional times we should not be surprised to see exceptional moves in confidence, he said.
The report carried a warning to readers - this report may be damaging to your health.
Every sector surveyed is now dismal about the future and the picture is also grim in other indicators surveyed.
Firms' own activity expectations fell from plus 16.7 last month to minus 11.4 this month, which is the second-lowest on record.
Employment intentions are also at a historic low. A net 21 per cent of respondents expect to have fewer staff, down 15 points.
Investment intentions are now minus 13 points, profit expectations fell to minus 32 per cent and export intentions went from plus 29 to plus 11.
"No one can be blamed for not knowing what to make of it all, or what to do next," Mr Bagrie said.
He said policy makers were working hard to stabilise the economic environment.
The report poses the question what has put the wind up respondents.
"Three things: credit, credit and credit."
Dislocation across credit markets continues and dominate reporting on the global economy.
