Latest news with #businessoptimism
Yahoo
09-07-2025
- Business
- Yahoo
German business sentiment rises: Ifo sees sixth consecutive lift
Germany's closely-watched IFO index, which measures business optimism in the country, rose in June despite wider geopolitical uncertainty. Firms rated the business climate at 88.4, the sixth consecutive monthly rise, and a notch up from the 87.5 reading seen in May. Business expectations came in at 90.7, up from 89.0 recorded in the previous month, and also marking the highest level seen since early 2023. The optimism comes despite geopolitical risks that threaten the German economy. A 90-day pause to so-called 'reciprocal' tariffs imposed by the US will come to an end on 9 July, creating significant uncertainty for Europe. The EU could see a baseline tariff of 10% jump to 50% if a deal is not reached before then. Related Highest-paying jobs in Germany: Official data and job postings reveal top salaries German economic morale soars in June: 'Confidence is picking up' Added to this, President Donald Trump has already reintroduced a 50% duty on EU steel and aluminium entering the US, as well as placing a 25% tariff on imported cars and car parts. In 2024, Germany posted a record trade surplus with the US of €69.95 billion. This year, the rising value of the euro may slightly hamper exports as it behaves like an extra tariff, making German goods more expensive for some overseas consumers. Despite these headwinds, there are factors contributing to the positive business climate in Germany, notably the government's pledge to increase spending. Berlin has recently approved a constitutional amendment to its 'debt brake' rule, meaning defence spending above 1% of GDP will not be subject to borrowing limits. Chancellor Friedrich Merz wants to boost military spending to 3.5% of gross domestic product by 2029. The government has also created a €500 billion extrabudgetary fund for additional infrastructure spending, set to give businesses an added boost. Germany's economy grew by a greater-than-expected 0.4% in the first quarter of this year, partly linked to US tariff frontloading. Declining interest rates are also easing borrowing costs for German businesses. At the start of June, the ECB lowered its benchmark interest rate by a quarter point to 2%, its lowest level in more than two years. Markets widely expect the ECB to hold its benchmark interest rate steady during its next policy meeting on 23-24 July. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Grant Thornton Tracker shows optimism in UK businesses
Grant Thornton UK's latest Business Outlook Tracker has revealed that optimism among UK business leaders regarding the economy's strength and their own growth expectations has remained 'steady'. This is said to surpass the tracker's rolling average. However, high operating and people costs are presenting ongoing challenges, with expectations of additional tax pressures later in the year. All 800 respondents in the survey of UK business decision-makers have expressed optimism about the UK economy, with mid-market businesses showing 81% optimism, 11 percentage points above the average since 2021. Despite UK labour statistics indicating falling vacancies and a rise in unemployment in June, 43% of businesses plan to increase recruitment investment over the next six months, which is 8 percentage points higher than the average. Mid-market businesses, those with a workforce size of ten to 100, are feeling the strain of high operating and people costs more acutely, which may be exacerbated by increased costs from employer National Insurance and National Minimum Wage contributions introduced in April. Of the 600 mid-market businesses surveyed, 67% have reduced or frozen hiring, and 62% have had to cut jobs due to these changes. While businesses generally feel supported by government strategy, 71% of respondents believe government policy promotes economic stability, and similar majorities agree on its support for business growth and the potential of the Industrial Strategy. However, there is a widespread expectation, with 75% agreeing that the Chancellor is likely to raise business taxes again before the end of the year. Revenue and profit growth expectations remain positive and steady among mid-market businesses, with revenue growth expectations for the next six months holding at 10 percentage points above the rolling average, and 8 points higher than last year. Large corporate organisations have a 79% expectation of revenue growth in the next six months, although this has decreased from 92% in December 2024. Profit growth is anticipated by 66% of mid-market companies, which is an increase of 7 points since April and 10 points above the average for large corporates. The data has also indicated that the Trump administration continues to be seen as a positive influence on UK business by mid-market respondents, with 74% agreeing, up 4 points since April. However, larger businesses, impacted by global supply chain disruptions from tariff and trade disputes, have shown reduced confidence at 68%, down 7 points since April. Grant Thornton UK managing director for Economic Consulting Tom Middleton said: 'If there's one thing businesses have learned over the past few years, it's the need to treat uncertainty as normality. Despite the volume of change and unknowns – from geopolitical and trade policy shocks in markets abroad to policy changes at home – UK businesses are adopting strategies to remain resilient, and this is reflected through their ongoing positivity, despite the headwinds. 'That's not to say that everything is smooth sailing. Businesses continue to grapple with high operating and people costs, largely resulting from the National Insurance and National Minimum Wage increases which came into force in April. Though businesses are broadly positive about government policy and strategy, there is a clear expectation that further pressure will come in the form of tax increases later this year.' "Grant Thornton Tracker shows optimism in UK businesses" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
RNZ News
30-06-2025
- Business
- RNZ News
Business correspondent Dan Brunskill
New Zealand's trade relationship with China remains safe until a decision is made about Aukus II. But Chinese consumer confidence is low, and New Zealand exports to its biggest export market are flatlining. Dan reports from his trip observing the Prime Minister Christopher Luxon in China. There's also a proposal from IRD to lift GST, while lowering PAYE for low-income earners and latest from the just-released business optimism survey.
Wall Street Journal
10-06-2025
- Business
- Wall Street Journal
America's Small Businesses Hopeful of Boost From Trump's Spending Bill
Main Street businesses are feeling less worried about their prospects, a survey showed, as tariff concerns lessen and hopes rise for an economic boost from President Trump's tax-and-spending megabill. The National Federation of Independent Business said Tuesday that its optimism index, a gauge of sentiment among small firms, rose to 98.8 in May from 95.8 a month earlier, taking the index back above its long-term average, represented by a reading of 98. The increase ends a four-month streak of worsening sentiment, as an initial post-election burst of confidence began to burst amid a whipsawing trade policy and concerns over inflation and a shrinking labor force.
Bloomberg
05-06-2025
- Business
- Bloomberg
US Business Optimism Slumps in ‘Clear Pivot' From Trump Election
US business optimism has moved sharply lower, deepening a trend seen in the first quarter and marking a sharp reversal from the buoyant mood among executives after Donald Trump's reelection as president. Less than a third, or 27%, of executives polled in May by the Association of International Certified Professional Accountants said they were confident about the economic outlook for the 12 months ahead, down from 47% of respondents in the first quarter and 67% in a survey conducted in the fourth quarter, just after the US vote.
