Business confidence has stabilised this month after plunging in October, according to the National Bank Business Outlook survey.
A net 43 per cent of respondents expect general business conditions to deteriorate over the coming year, little changed from a net 42 per cent in the October survey.
"Itis abundantly clear from the survey that the coming 12 months will be the most challenging this economy has faced in more than two decades," said Cameron Bagrie, chief economist at the National Bank.
The survey's authors said there was a danger that the barrage of bad economic news would become self-fulfilling.
"But aside from that, the collective message from the survey remains poor."
Firms' own activity expectations fell another 3 percentage points. A net 14 per cent expect worse times over the year ahead for their own businesses.
"Only in April 1988 have we seen a worse read," said Bagrie.
Brace yourself for a sharp rise in the unemployment rate based on this survey.
Firms' employment intentions matched last month's record low of a net 21 per cent expecting fewer staff over the year ahead.
Firms' profit expectations have also hit a historical nadir with a net 39 per cent expecting lower profits over the coming 12 months.
But Bagrie said around the globe policymakers were working hard to restore trust in the financial and economic system.
