Hear the latest from Tony Alexander's Business Insights survey
The latest survey conducted by Tony Alexander offered a comprehensive look at the concerns and strategic adjustments of New Zealand businesses as they navigate through 2025.
The results, based on responses from a diverse pool of businesses, spotlight both persistent worries and new shifts in spending priorities.
Key concerns for businesses in 2025
Persistent economic worries
Businesses continue to be apprehensive about the general economic outlook, with customer demand and business profitability also ranking high among their concerns.
Interestingly, interest rates, previously a top concern, have receded in importance over the past three months.
Emerging political concerns
A notable shift in this month’s survey is the increasing anxiety over political developments, potentially stirred by debates such as the Treaty discussions.
However, issues like cyber threats, the high value of the NZ dollar, and climate change impacts remain low on the list of business worries.
Economic data and market reactions
The apprehensions have been exacerbated by disappointing economic growth data released before Christmas and unexpected revenue shortfalls during the festive season, which have spiked concerns even further.
Spending intentions and strategic investments
Top spending priorities
Businesses are prioritising the retention of existing customers, strategy development, and enhancing their social media presence, recognising the need to adapt to changing consumer behaviors and digital landscapes.
Cautious approach to climate change
Investments in climate change mitigation remain minimal, reflecting a broader hesitation among businesses to allocate funds to this area despite increasing public discourse on environmental issues.
Labour and recruitment adjustments
There has been a slight positive shift in recruitment spending, indicating growing optimism about improving customer flows and economic conditions. However, spending on remuneration shows a more cautious adjustment, likely due to the uncertain economic outlook.
Pricing strategies and inflation concerns
Price adjustments
A net 6% of businesses reported they do not plan to increase prices, which could bode well for inflation control. However, there is a subtle shift towards less negative sentiments about holding prices steady, hinting at potential inflationary pressures on the horizon.
Labour market and staff morale
Availability of skilled staff
Finding skilled staff is reportedly becoming easier, with a net 14% of businesses noting an improvement. This trend aligns with other data from 2024, suggesting no significant tightening in the labor market yet.
Outlook on staff morale
There is a cautiously optimistic view on the improvement of staff morale and mental health, with a net 12% of businesses expecting positive changes. This follows a noticeable improvement in the latter half of last year, which now seems to have stabilized, the report said.
Access the full report here.
