Many are shelving plans for equipment upgrades, reducing inventory, and cutting back on hiring. Worryingly, this month’s survey showed a drop in employment indicators, reversing earlier signs of recovery.
Despite subdued expectations for growth, cost pressures remain persistent.
“Despite the worsening outlook for 2025, the pressure on margins from rising costs is sufficiently great that plans for raising selling prices have increased,” Alexander said.
Top business concerns: Economy, politics, and demand
When asked about their biggest worries for the year ahead, businesses pointed to economic uncertainty, softening demand, and political instability as the top three concerns.
While few view the New Zealand dollar as overvalued, a growing number now believe it’s too low, which may further squeeze import-reliant sectors.
