[WELLINGTON] Business sentiment in New Zealand rose in May, led by gains across all sectors, particularly construction, an ANZ Bank survey showed on Tuesday.

The survey's headline measure showed a net 11.3 per cent of respondents expect the economy to improve over the year ahead. This compared with a 6.2 per cent optimism level in the previous poll.

"The economic trail remains well groomed. Migration is strong. House prices are booming," said ANZ chief economist Cameron Bagrie in a written statement, adding that the construction sector was the most upbeat sector and agriculture the least.

A net 30.4 per cent of respondents expect their own businesses to grow in the next 12 months, from 32.1 per cent last month.

Inflation expectations fell to 1.39 per cent compared with 1.42 per cent in the previous survey.

REUTERS