Latest news with #BusinessNewZealand
RNZ News
21-05-2025
- Business
- RNZ News
Younger workers don't want leadership roles: survey
Photo: A new global survey of younger workers show few want to reach leadership positions and most prioritise work-life balance. The international consulting firm Deloitte has surveyed 23,000 Gen Z and Millennials, born between 1983 and 2006 , across 44 countries. This generation will make up three quarters of the workforce by 2030. The survey found that only 6% of Gen Zs are motivated by reaching senior leadership positions. Both groups have high expectations for their employers, want career progression and will job hop to get it - as well as work-life balance. So what are the implications for employers, business and the economy ? Kathryn speaks with Deloitte Partner Lauren Foster, and Business New Zealand Chief Executive Katherine Rich.
RNZ News
19-05-2025
- Business
- RNZ News
Service sector index drops signalling soft economic recovery
The economically important services sector is struggling to get traction. Photo: The economically important services sector is struggling to get traction and weighing on the pace of recovery. The BNZ-Business New Zealand Performance of Services Index (PSI) fell 0.4 points to 48.5 in April from the month before. A reading below 50 means activity is slowing in a sector which accounts for about two-thirds of the economy and includes tourism, retail and hospitality. "The survey says the services sector is still going backwards. 48.5 is below 50.0 which is contraction, and indeed its three months in a row the service sector has been going backwards," BNZ senior economist Doug Steel said. The sub-indices were mostly negative compared to March. Sales were unchanged, but employment fell and deliveries slumped to their lowest level since September 2024. Only new orders bucked the trend, rising to the highest level in over a year. The level of negative comments in the survey rose once again, citing a combination of geopolitical and economic uncertainty, the cost of living, weak consumer and business confidence, and seasonal slowdowns. "For all the commentary around the economic recovery, the PSI is a good reminder that current conditions are extremely challenging. New Zealand's PSI remains weaker than all our key trading partners," Steel said. He said combined with last week's manufacturing survey , a picture emerges of an economy struggling to gather forward momentum, threatening growth forecasts . "It suggests that the central bank will continue easing. We think they'll cut by 25 basis points next week." Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
16-05-2025
- Business
- RNZ News
Manufacturing sector recovery continues at steady pace but caution lingers
Photo: 123RF The recovery in the manufacturing sector continues at a steady pace, but caution lingers. The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) rose 0.70 points in April to 53.9 - the fourth consecutive month of expansion, and the highest since August 2022. A reading above 50 indicates expansion. Rises in the employment, new orders and deliveries components pushed the PMI higher, overcoming falls in production and finished stocks. However, BNZ senior economist Doug Steel remains cautious, noting that although employment and deliveries of raw materials had risen, suggesting demand ahead, gains in new orders remained below average. "There's still some question marks around ahead, especially when you look globally and what's happening offshore, That uncertainty hasn't really dented the index here yet." Steel said. On a positive note, he said that four months of expansion above 50.0 this year suggests that the recovery is underway, albeit slowly. "It's not particularly strong, but its at least going forward compared to the last couple of years where it was heavily below 50.0. So recovery from a low base." But Steel remained cautious, saying offshore developments were still key to the recovery's durability. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Otago Daily Times
08-05-2025
- Business
- Otago Daily Times
Capital spend to get boost in Budget
By Jo Moir of RNZ Capital expenditure - new money set aside in the Budget to maintain or upgrade assets - will be higher than originally forecast when the government delivers its Budget in two weeks' time. In a speech to Business New Zealand on Thursday, the prime minister said the money, which would be split mostly across health, education, defence, and transport, would total $6.8 billion. It means the net capital allowance, once savings identified in the Budget have been accounted for, will increase from the $3.6b previously signalled, to $4b. Last week Finance Minister Nicola Willis cut the operating allowance by half to $1.3b. Christopher Luxon told the business audience the smaller operating allowance was the "right call because keeping our word matters". "I know there are some commentators calling for larger allowances and more spending. "They need to be honest that those decisions will mean more debt, more deficits, and an indefinite delay to New Zealand's return to surplus," Luxon said. Luxon said capital expenditure, including for frontline services like health and education, would be a priority in the May 22 Budget. "In health, education, law and order, defence, and transport my government is prioritising significant new investments. "Each of those areas are a priority for New Zealanders and they require more funding to deliver the quality services Kiwis expect. "But that comes with trade-offs," he said. "Spending more on everything, as some commentators have called for, would mean larger deficits, more debt, and ultimately fewer choices in future budgets as the cost of servicing our debt grows even larger and the prospect of returning to surplus evaporates." Luxon said capital investment would be critical to the country's "growth journey", but he noted that would not happen if "we invest more but continue to lag behind the global technological frontier". "In Budget 2025, we will be allocating the funding we need to give effect to the changes I announced earlier this year, including the establishment of three new Public Research Organisations. "I also know that following a review of the Research and Development Tax Incentive that kicked off last year, the business community has been looking for some certainty on the future of the programme. "That review was required in law, and the final report has not yet been tabled in Parliament," he said. "However, I can confirm today that we are retaining the RDTI in this year's Budget so businesses have the certainty they need to keep investing and keep going for growth." Luxon also announced funding would be provided in the Budget for the government's new Invest NZ agency, which was set up earlier this year to support foreigners wanting to invest here. Luxon said this month's Budget comes alongside a "challenging international backdrop". "Trade tensions overseas have seen growth forecasts revised down across the world, as exporters and consumers come under sustained pressure. "The sharp deterioration of financial markets in early April have somewhat recovered in recent days and weeks, but markets remain volatile." There were greenshoots too though, he said, with ANZ's initial estimate last week that "the smaller operating allowance would support interest rates being 5-10 basis points lower than otherwise." "Meanwhile, Treasury has estimated that with a tighter budget package, interest rates would be up to 30 basis points lower by the end of the forecast period. "For a family with a mortgage, or a farmer or entrepreneur taking on debt to grow their business, that means real financial relief and more opportunity to get ahead," Luxon said.
RNZ News
08-05-2025
- Business
- RNZ News
Christopher Luxon announces boost to capital spend in pre-Budget speech
Photo: RNZ / Samuel Rillstone Capital expenditure - new money set aside in the Budget to maintain or upgrade assets - will be higher than originally forecast when the government delivers its Budget in two weeks' time. In a speech to Business New Zealand on Thursday, the prime minister said the money, which would be split mostly across health, education, defence, and transport, will total $6.8 billion. It means the net capital allowance, once savings identified in the Budget have been accounted for, will increase from the $3.6b previously signalled, to $4b. Last week Finance Minister Nicola Willis cut the operating allowance by half to $1.3b. Christopher Luxon told the business audience the smaller operating allowance was the "right call because keeping our word matters". "I know there are some commentators calling for larger allowances and more spending. "They need to be honest that those decisions will mean more debt, more deficits, and an indefinite delay to New Zealand's return to surplus," Luxon said. Luxon said capital expenditure, including for frontline services like health and education, will be a priority in the 22 May Budget. "In health, education, law and order, defence, and transport my government is prioritising significant new investments. "Each of those areas are a priority for New Zealanders and they require more funding to deliver the quality services Kiwis expect. "But that comes with trade-offs," he said. "Spending more on everything, as some commentators have called for, would mean larger deficits, more debt, and ultimately fewer choices in future budgets as the cost of servicing our debt grows even larger and the prospect of returning to surplus evaporates." Luxon said capital investment would be critical to the country's "growth journey", but he noted that would not happen if "we invest more but continue to lag behind the global technological frontier". "In Budget 2025, we will be allocating the funding we need to give effect to the changes I announced earlier this year, including the establishment of three new Public Research Organisations. "I also know that following a review of the Research and Development Tax Incentive that kicked off last year, the business community has been looking for some certainty on the future of the programme. "That review was required in law, and the final report has not yet been tabled in Parliament," he said. "However, I can confirm today that we are retaining the RDTI in this year's Budget so businesses have the certainty they need to keep investing and keep going for growth." Luxon also announced funding would be provided in the Budget for the government's new Invest NZ agency, which was set up earlier this year to support foreigners wanting to invest here. Luxon said this month's Budget comes alongside a "challenging international backdrop". "Trade tensions overseas have seen growth forecasts revised down across the world, as exporters and consumers come under sustained pressure. "The sharp deterioration of financial markets in early April have somewhat recovered in recent days and weeks, but markets remain volatile." There are greenshoots too though, he said, with ANZ's initial estimate last week that "the smaller operating allowance would support interest rates being 5-10 basis points lower than otherwise." "Meanwhile, Treasury has estimated that with a tighter budget package, interest rates would be up to 30 basis points lower by the end of the forecast period. "For a family with a mortgage, or a farmer or entrepreneur taking on debt to grow their business, that means real financial relief and more opportunity to get ahead," Luxon said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
