Latest news with #businesssentiment
RNZ News
3 days ago
- Business
- RNZ News
Rotorua tourism, hospo businesses concered about exchange rate fluctuations
The Rotorua Museum - Most survey respondents were from tourism, accommodation, or hospitality and food service. Photo: LDR / Laura Smith The latest Rotorua business sentiment survey shows local companies are not immune to global instability. Geopolitical volatility was the highest-ranked concern for business leaders, with 43 percent very or extremely concerned about its effect on their business. This was the first time global concerns had outweighed local issues, such as finding skilled staff, the survey showed. RotoruaNZ chief executive Andrew Wilson said this showed many business leaders were very connected with their global markets. Most respondents were from tourism, accommodation, or hospitality and food service. While these might be less affected by tariffs then export-led industries, Wilson said geopolitical volatility led to fluctuations in exchange rates, which effected the value of a visitor dollar. "Obviously, when we've got a weaker New Zealand dollar, we look very favourable for international tourism." He said the key for businesses riding out this volatility was having diversity in the markets they targeted. "Within those international markets, have you got a good spread in terms of the types of countries you are focused on, so you're not ending up in a scenario where you've got all your eggs in one basket." This was similar to other industries, like agriculture , which was also encouraged to look for new markets. Wilson said he wasn't completely surprised to see the survey result. "We've got a local economy, which is quite export-focused, so from that perspective, whether it is tourism or forest or wood processing, what's happening in that global environment is really important for local businesses." RotoruaNZ began the business sentiment survey three years ago to get a better view of what was happening in the city's economy. "A lot of banks do business confidence surveys, but we found a lot of the data was aggregated up at a regional or national level, so it was really about making sure we've got a view about what is going on in our local economy here in Rotorua," he said. Business sentiment was up 14 percent since the last survey in October 2024, but was still a net negative of minus-11 percent - higher than the national figure of minus-29 percent, but Wilson said the trend toward positivity was a good sign. "Certainly, that advance-metric of the positivity trend up is a really good signal in terms of what we will start to see over the next 12-24 months in terms of business activity." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
NHK
4 days ago
- Business
- NHK
China data cast shadows on economy
With China set to release key economic data, one analyst says it will likely show a continued dip in business sentiment and real estate investments, due to the lingering effects of tariffs and the employment situation.
CNA
6 days ago
- Business
- CNA
Real wages grew 3.2% in 2024 compared with 0.4% in 2023 as inflation eased: MOM
SINGAPORE: Wages in Singapore grew at a faster pace last year compared with 2023 as inflation eased, the Ministry of Manpower (MOM) said in a report on Wednesday (May 28). Real wages rose 3.2 per cent in 2024, up from 0.4 per cent in the year before. Inflation stood at 2.4 per cent last year compared with 4.8 per cent in 2023. The rise in real wages for 2024 is the highest since 2019, with the pace of growth largely on the decline since 2018. Nominal total wages, which does not take inflation into account, increased 5.6 per cent, slightly higher than the 5.2 per cent recorded in 2023. But MOM warned that downside risks from geopolitical tensions and global trade uncertainties are weighing on business sentiment. Its forward-looking survey conducted in the first quarter of this year indicated a decline in the share of firms planning to increase wages. 'These trends point to a potential moderation in nominal wage growth in 2025 compared to 2024, especially in trade-reliant sectors such as manufacturing and wholesale trade,' MOM said. MORE COMPANIES RAISED WAGES IN 2024 Nearly 80 per cent of companies gave their employees wage increases last year, up from 65.6 per cent in 2023, as most establishments were profitable. 'A majority of establishments gave the increases due to past organisational performance rather than forward-looking confidence,' MOM said. Among companies that raised salaries in 2024, the average wage increase dipped to 6.6 per cent compared with 7.2 per cent in 2023. For the 3.2 per cent of companies that cut wages in 2024, the size of the decrease was 3.6 per cent. In 2023, 6.5 per cent of companies cut wages by 6.2 per cent. MOM said profitability of companies varied across industries, with real estate services, construction and wholesale trade having fewer profitable establishments, and manufacturing seeing an increase in profitable businesses. But manufacturing and wholesale trade may have fewer profitable companies in the coming year due to global trade tensions, the ministry said. SECTORS WITH THE BIGGEST WAGE INCREASES Financial services, as well as the community, social and personal services sectors, saw an above-average increase in nominal wage growth last year. The biggest increase was in administrative and support services at 8.7 per cent, largely due to the Progressive Wage Model. Food and beverage services saw below-average increases in wages, as with wholesale trade and manufacturing, where wage increases are expected to moderate in the coming year due to geopolitical and trade tensions. Across Singapore, the wages of rank-and-file and junior management employees grew 5.8 per cent and 5.6 per cent respectively, slightly higher than the 5.1 per cent reported for senior management. MOM said this partly reflects efforts to offset cost-of-living pressures. Government policies such as increases in the local qualifying salary and the implementation of the Progressive Wage Model helped to lift wages of lower-income employees, the ministry added. 'The increase in wages of lower-income employees did not have a significant impact on cost competitiveness, as they only form a very small component of total business costs,' MOM said.
Zawya
7 days ago
- Business
- Zawya
UK retail sentiment plummets in May and sales fell more sharply, CBI says
Confidence among British retailers fell at the sharpest pace in five years and a decline in sales volumes gathered pace as stores expect conditions to worsen, a Confederation of British Industry survey showed on Tuesday. The CBI's quarterly gauge of business sentiment plunged in May with a net balance of firms expecting their business situation to worsen over the coming three months at -29% in May from -19% in February. It was the lowest reading since May 2020. Its monthly gauge of how retail sales compared with a year earlier fell to -27 this month - the lowest since March - from -8 in April, which had been its highest since October. A measure of expected sales for June fell to -37, the lowest since February 2024. "This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better," Ben Jones, lead economist at the CBI, said. Official data last week showed British retail sales jumped by much more than expected in April. The CBI's quarterly survey also suggested that retailers were cutting back on hiring, scaling back investment and expected to increase their selling prices at the fastest pace in more than a year.
Reuters
20-05-2025
- Business
- Reuters
Japanese manufacturers less confident due to Trump tariff action
TOKYO, May 21 (Reuters) - Japanese manufacturers were less confident about business conditions in May compared with April and they expect sentiment to weaken over the next three months as changing U.S. tariff action saps optimism, a Reuters Tankan poll showed. The subdued mood illustrates the challenge policymakers face after the economy shrank in the January-March quarter, with recovery under threat from U.S. President Donald Trump's trade policy involving the imposition and suspension of steep tariffs. In the monthly poll, which tracks the Bank of Japan's quarterly business survey, the manufacturers' business sentiment index slipped to plus 8 in May from plus 9 in April. Manufacturers also said sentiment is likely to weaken to plus 7 over the coming three months. Still, the figures remain in positive territory, indicating optimists outnumber pessimists about business conditions. The Reuters poll surveyed 504 major non-financial companies of which 224 responded on condition of anonymity. Issues raised included rising prices and Chinese economic stagnation. The poll was conducted from May 7-16, after Japan held a second round of tariff talks with the United States. Japan wants the U.S. to fully remove tariffs on its goods, including a 25% duty on automobiles and auto parts. "Uncertainty over the outlook, including the U.S. tariffs, persists," a manager at an electronics machinery maker wrote in the survey. "Business conditions are not good due to the delay and freezing of capital investment in Japan caused by the U.S. trade policies," said a manager at a steelmaker. Still, sentiment in the transport sector jumped to its highest level since December 2023, with one manager saying their business had experienced an increase in vehicle production volume. In the near term, firms in the transport and metal products said sentiment is likely to worsen due to tariff uncertainty, accelerating inflation and China's weakening economy. For the service sector, the business sentiment index stood at plus 30 in May, unchanged from April. Companies expect sentiment to weaken to plus 28 in the three months ahead. Rising labour and raw material costs weighed on confidence, said a manager at a transportation firm, whereas some managers found support from inbound tourism.
