The latest NZIER Quarterly Survey of Business Opinion has revealed business confidence has taken a hit for the March quarter.
Only a net 1 percent of firms expect better general economic conditions over the coming months on a seasonally adjusted basis.
EMA Head of Advocacy Alan McDonald says people were expecting the economy to get better - and this conflict put an economic 'handbrake' on recovery.
LISTEN ABOVE

The Huddle: Do we think Luxon's safe in his seat?
10:21

Barry Soper: Newstalk ZB senior political correspondent on the conclusion of the Luxon saga
05:19

James Renwick: Victoria University professor on whether the forecasting technology could have better predicted Wellington rainfall
03:44