The latest IoD pulse also reveals more optimism about the outlook for the New Zealand economy.
The swing from a 3.2% drop in December was double expectations.
The economy is slowing but some regions continue to buck the trends.
Shares drop 2% after announcement.
Shoeshine: Shareholders have little choice but to hope a huge rights issue will rescue their company.
Market Outlook: RBA cut widely expected and Wall Street tumbles.
As small property investors walk away from investment properties in the newly regulated environment, better-financed long-term players will step in.
How do firms improve productivity by looking after their staff?
Entrepreneur series: 23-year-old Levi Fawcett’s online marketplace is taking off.
Two US government agencies launch investigations of Facebook and Alphabet’s Google.