By James Glynn

SYDNEY--New Zealand business confidence dipped a little in October from September, but firms remain upbeat overall about the economy, according to a survey by ANZ.

A net 24.5% of businesses are optimistic about the year ahead, down 3 points on the month prior month, but that's still the second-highest reading this year, said Cameron Bagrie, chief economist at ANZ in New Zealand.

"Service sector firms get the candy bag for first place. Agriculture is dragging the chain but is far less grave than it was at the start of the year," he added.

The New Zealand economy has plenty of momentum, and this looks set to continue for a while yet. Indicators of both business and consumer confidence are still consistent with GDP growth accelerating from its current pace of 3.5% into next year, according to the survey.

But the economy doesn't have the capacity to do that for too long, he warned.

Inflation expectations remain unchanged over the month at 1.44%, the survey showed.

-Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

October 30, 2016 20:25 ET (00:25 GMT)

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