Latest news with #businessinvestment
News.com.au
2 days ago
- Business
- News.com.au
‘Downward pressure on prices': Silver lining in Trump trade
Aussies households are tipped to slow their spending on the back of US President Donald Trump's tariff policy even though they will likely benefit from cheaper goods and it helped deliver a rate cut in May. In a speech made at the Economic Society of Australia Business Lunch, RBA assistant governor Sarah Hunter said Australia was one of the countries that could benefit from cheaper goods in the short term as weakening growth outweighs rising costs for businesses. 'Overall weaker global growth would put near-term downward pressure on the prices of globally traded goods,' she said. 'For countries that are not imposing higher tariffs, such as Australia, this could flow into import prices, making products cheaper and lowering inflation.' But the Trump tariffs are unlikely to lift anaemic household spending, with Australians tipped to moderate their purchases, while business investment is tipped to stall. 'Greater uncertainty about the future can lead households and businesses to save instead of spending and investing, and this is likely to be the case for Australian households and businesses too,' Ms Hunter said. 'Though the magnitude of these effects is itself very uncertain, this does suggest that global uncertainty may weigh substantially on domestic activity if uncertainty remains elevated.' Ms Hunter said there were various forecasts the RBA had made surrounding the global environment, with the base case showing slower economic growth in Australia, a slightly weaker labour market and the price of tradeable goods to dampen. 'Together, these two outcomes mean that inflation is forecast to be a little lower than the February statement of monetary policy, settling around the midpoint of 2 to 3 per cent target range,' she said. Ms Hunter said the overall economic uncertainty on the back of the Trump policies also added to the 25 basis point rate cut in May. 'These were provided to the Monetary Policy Board to help inform their decision-making; taking all the information into account and considering the risks to the outlook, they decided to cut the cash rate by 25 basis points,' she said. Going forward, Ms Hunter said the central bank would continue to watch the data. Mr Trump announced on April 2 a global tariff policy on just about every trading partner on the basis of evening up the US trade deficit. At a minimum, every country, including Australia, faced a 10 per cent tariff, while 'cheating' countries faced higher tariffs Mr Trump eventually paused the majority of his tariff policy for 90 days due to the damage that was being done to his own economy and money markets. He also faced a challenge in the federal courts over his use of power.
CNA
3 days ago
- Business
- CNA
Japan Q1 corporate capex up 6.4%, points to solid domestic demand
TOKYO :Japanese corporate spending on plants and equipment rose 6.4 per cent year-on-year in the first quarter, Ministry of Finance data showed on Monday, showing a bright spot in the country's patchy economic recovery amid uncertainties over global demand. The solid expenditure data, which will be used to calculate revised gross domestic product figures due on June 9, shows at least one driver of domestic demand is solid, though U.S. President Donald Trump's tariffs could eventually deal a blow. Preliminary data last month showed Japan's economy shrank by an annualised 0.7 per cent in January-March, contracting for the first time in a year due to stagnant private consumption and falling exports. Capital spending in the quarter rebounded from the previous quarter's 0.2 per cent decline, which represented the first quarterly fall in nearly four years, according to Monday's finance ministry data. It grew 1.6 per cent on a seasonally adjusted quarterly basis. Monday's capex data also showed corporate sales rose 4.3 per cent in the first quarter from a year earlier, and recurring profits increased 3.8 per cent. Capital expenditure is one of the key gauges of domestic demand-led economic growth. Business spending remained generally solid in recent years due to strong appetite for investment in information technology to offset chronic labour crunch in the fast-ageing population.
RNZ News
6 days ago
- Business
- RNZ News
Watch: Christopher Luxon and Nicola Willis speak in Rangiora
They have been visiting Sutton Tools - a company whose factory in Kaiapoi went up in flames after a fire which was started accidentally in January 2022. Last year, Star News reported that the construction of Sutton Tools' new $20 million factory in Rangiora was scheduled to open early in 2025. The visit comes following the government's Budget announcement of a tax incentive targeting businesses . The Investment Boost policy would allow a business to immediately deduct 20 percent of the cost of a new asset on top of depreciation. The policy came into force immediately, and applies to assets purchased in New Zealand as well as new and used assets imported from overseas. "It includes commercial buildings but excludes land, residential buildings, and assets already in use in New Zealand." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
6 days ago
- Business
- RNZ News
Watch live: Christopher Luxon and Nicola Willis speak in Rangiora
They have been visiting Sutton Tools - a company whose factory in Kaiapoi went up in flames after a fire which was started accidentally in January 2022. Last year, Star News reported that the construction of Sutton Tools' new $20 million factory in Rangiora was scheduled to open early in 2025. The visit comes following the government's Budget announcement of a tax incentive targeting businesses . The Investment Boost policy would allow a business to immediately deduct 20 percent of the cost of a new asset on top of depreciation. The policy came into force immediately, and applies to assets purchased in New Zealand as well as new and used assets imported from overseas. "It includes commercial buildings but excludes land, residential buildings, and assets already in use in New Zealand." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Reuters
29-05-2025
- Business
- Reuters
Australia business investment dips in Q1, drags on growth
SYDNEY, May 29 (Reuters) - Australian business investment dipped in the March quarter as gains in mining were offset by a pullback elsewhere, while a drop in equipment spending looked to have dragged on economic growth. Data from the Australian Bureau of Statistics on Thursday showed private capital spending fell a real 0.1% in the first quarter from the previous quarter, when it rose a revised 0.2%. The market forecast had been for an increase of 0.5% in the March quarter. Spending on buildings and structures rose 0.9%, while spending on plant and machinery fell 1.3%. An ABS survey of firms showed they planned to spend A$155.9 billion ($99.99 billion) in the fiscal year to June 2026, in line with analyst expectations. ($1 = 1.5591 Australian dollars)
