Business confidence in New Zealand rose to its strongest level in a decade in October as firms' activity outlook improved, according to a monthly survey by ANZ.

The Business Confidence Index rose to 65.7 in October from 60.9 in September, marking its highest level in 10 years.

The index measuring firms' outlook on their own activities improved to 45.9 from 45.3, with a more positive sentiment among manufacturers. Retailers, however, gave up recent gains amid subdued consumer confidence during the month.

The "export intentions" index rose to 17.1 from 13.8, its highest level since September 2018.

The past activity and employment measures remained in the negative territory.