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Globe and Mail
08-07-2025
- Business
- Globe and Mail
Most US employers not budging on budgets, salary increases remain flat
NEW YORK, July 08, 2025 (GLOBE NEWSWIRE) -- Average salary increase budgets for US companies in 2026 are expected to remain stable at 3.5%, matching 2025's actual increases. This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. Three out of five organizations saw their salary budgets change in the last pay cycle. More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns related to cost management (45%). Tight labor markets (59%) and inflationary pressures (30%) are the most commonly cited reasons for change among the relatively few organizations that are projecting higher salary increase budgets. 'While top-line budgets are generally holding steady, the real shift is happening beneath the surface. Organizations are being more deliberate about how they allocate pay, where they focus investment and what outcomes they expect to drive. Employers are no longer simply reacting to economic signals; they're reimagining how to best support broader business goals despite uncertainty,' said Brittany Innes, director, Rewards Data Intelligence. Despite stable pay increases, employees are staying put. Fewer organizations this year have found employee stability challenging compared to the past two years. Less than one-third of organizations (30%) report difficulty attracting or retaining employees, representing a decrease of 11 percentage points since 2023. In response to market conditions in which turnover is relatively low and burnout and disengagement remains a concern, organizations have taken a number of actions to support their workforce, including improving the employee experience (47%), enhancing health and wellness benefits (43%) and increasing training opportunities (40%). Additionally, employers are adjusting compensation programs to address the competitive labor market and inflationary pressures. These actions have included conducting a compensation review of all employees (50%), performing a compensation review of specific employee groups (48%), hiring people higher in relevant salary ranges (45%) and raising starting salary ranges (40%). Over two-fifths of organizations (43%) have enhanced their use of retention bonuses or spot awards and 37% have targeted base salary increases for specific employee groups. As organizations focus on these efforts, they continue to wrestle with higher annual payroll expenses. The average annual payroll expense increased by nearly 4% (3.6%), and 7 in 10 organizations report total annual payroll expenses higher than last year. 'As employers navigate continued economic uncertainty, ongoing increases in labor costs and the changing needs and expectations of employees, they are positioning themselves for what is to come and making investments in their workforces that go beyond pay raises. These include career development, wellbeing, flexibility and equity—because these are critical for performance, retention and resilience in a shifting market,' said Lori Wisper, managing director, Work & Rewards. About the survey The Salary Budget Planning Report is compiled by WTW's Rewards Data Intelligence practice. The survey was conducted from April to June of 2025. Approximately 29,128 responses were received from companies across 157 countries worldwide. In the U.S., 1,569 organizations responded. About WTW At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at Media contacts: Ileana Feoli
Bloomberg
04-07-2025
- Business
- Bloomberg
Hungary's Industry Shrinks More Than Expected on Battery Woes
Hungary is struggling to turn its industrial sector around, data showed Friday, as weakness in battery production continues to pull back manufacturing. Industrial output declined 2.6% in May compared to a year earlier, the Budapest-based statistics office said. That was substantially worse than any of the forecasts in a Bloomberg survey, where the median projection was for a 1.5% contraction. Month-on-month, production was 1.3% lower.
France 24
04-07-2025
- Business
- France 24
As US stocks hit records, experts see the dollar falling further
The American currency is down more than 10 percent so far in 2025, a historic retreat that has overlapped with occasional spikes in long-term US Treasury yields. The anomalous dynamic suggests investors are rethinking US holdings, once considered safe havens, as they take stock of President Donald Trump's unpredictable policy shifts. While the dollar's status as the global reserve currency appears unshakeable in the near future, many currency experts expect the greenback to continue to weaken in the coming years, given expectations for slower growth after a long run of US out-performance. "It's US exceptionalism basically falling by the wayside and the rest of the world playing catch-up," said Erik Nelson, a macro strategist at Wells Fargo, who predicts the dollar will continue to depreciate. In April, global markets were shaken by "Sell America" gyrations in the stock, foreign exchange and US treasury markets, and analysts expect similar sentiment in the future. "I think the world is becoming a little bit less stable politically, which is generally kind of problematic for economic and financial market volatility," Nelson said. "We are witnessing the end of a 14-year bull run of the US dollar," said Joseph Brusuelas, chief economist at RSM US, a consultancy, who expects a "multi-year unwinding of the dollar." Harvard Economist Kenneth Rogoff, author of the 2025 book "Our Dollar Your Problem," said central banks in China and elsewhere were diversifying away from dollars even before 2025, but that Trump accelerated the trend. "I think we'll see a period of a lot of financial volatility, largely centered around the chaos in the United States," Rogoff told AFP, pointing to factors that include uncertainty about US central bank independence and the rise of populism. "We'll probably have a more volatile period in financial markets over the next 10 years than we have in the preceding." Onshoring benefit Both Nelson and Rogoff pointed out that the dollar at the start of 2025 was unusually lofty after surging in the weeks following Trump's November 2024 victory. Economists have since rethought assumptions that the US would continue to outperform rival economies. According to the ICE US Dollar Index, a basket of seven currencies, the dollar fell 10.7 percent through the end of June, the biggest drop in the first six months of a year since 1973. On Thursday, the dollar index rose modestly after solid US jobs data dimmed odds for imminent Federal Reserve interest rate cuts. With a gain of more than 13 percent against the dollar, the euro has been among the biggest winners following Germany's big fiscal investments in defense, even as the European Central Bank continued to cut interest rates. Besides a weaker US economic outlook, the shift in the dollar reflects expectations for looser US monetary policy. Trump has taken relentless aim at Jerome Powell, referring to the Federal Reserve Chair as "a stupid person" while calling for interset rates "at least two to three points lower" -- a huge shift in monetary policy. While Treasury Secretary Scott Bessent and other top officials have rejected suggestions they prefer a cheap dollar, a less expensive currency is beneficial to US exporters and consistent with the administration's stated goal of beefing up manufacturing. "Lower interest rates and a weaker dollar would enable the US to strengthen its economic self-sufficiency and increase onshoring," said Jason Schenker of Prestige Economics, who argues that the moves align with a muscular national security posture towards China. Market watchers have come to expect Trump to modulate his actions in response to big negative market swings. On April 9, Trump backtracked on many of the most onerous tariffs from his "Liberation Day" announcement a week earlier after a spike in Treasury bond yields hammered stocks. Later that month, he said he has "no intention" of firing Powell after earlier comments set markets ablaze. But equity markets so far appear unfazed by dollar weakness, with both the S&P 500 and Nasdaq ending Thursday's session at records. "At some point it's going to get investors' attention," Cresset Capital Management's Jack Ablin said of the weak dollar.
Yahoo
01-07-2025
- Business
- Yahoo
BlackRock eyes shorter-term bets amid shaky global economic foundations
By Davide Barbuscia NEW YORK (Reuters) -The BlackRock Investment Institute (BII) said on Tuesday that growing uncertainty around traditionally stable, long-term economic trends is pushing it toward shorter-term strategies amid an increasingly unclear global economic outlook. For decades, markets have relied on core principles such as inflation stability, government fiscal discipline, central bank independence, and the safe-haven status of U.S. assets like the dollar and Treasuries. But investor confidence in these foundations has been shaken this year by U.S. tariffs, concerns over the future political independence of the Federal Reserve, and a broad re-evaluation of exposure to U.S. assets as U.S. President Donald Trump moves to reshape global trade dynamics. "Longer term, with macro anchors lost, no one knows where the global economy is ultimately headed," BII, a division of U.S.-based BlackRock focused on investment research, said in a mid-year 2025 global investment outlook note. "That's why, for now, we invest in the here and now – and lean more on our tactical six- to 12-month horizon," it said. The institute's investment outlooks are based on views from senior portfolio managers and investment executives at BlackRock, which is the world's largest asset manager. BII said it has turned more optimistic on government bonds in the euro area over the next six to 12 months. In equities, it continues to favor U.S. stocks over their European counterparts. Higher government spending in Europe could support the aerospace, defense, and financial sectors. But U.S. stocks are expected to outperform, driven by the artificial intelligence boom and demand for technology, even if tariffs will be a drag on the economy, it said. Tariffs and slowing U.S. immigration are expected to maintain upward pressure on inflation, limiting the Federal Reserve's ability to cut interest rates, BII said. The institute kept a bearish stance on long-dated U.S. Treasuries and shifted from an "underweight" to a "neutral" view on emerging market local currency debt after the dollar lost about 10% this year against major currencies. "The potential for a further U.S. dollar retreat and brighter emerging market (EM) growth outlook make local currency EM bonds more attractive in a whole portfolio context," it said. 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
19-06-2025
- Business
- Yahoo
4 Retail Stocks Holding Up Despite Sales Decline for Second Month
U.S. retail sales declined for the second straight month in May, signaling a more cautious behavior among American consumers. According to the Commerce Department, retail sales fell 0.9% month over month to $715.4 billion, following a revised reading of a 0.1% decrease in April. This was the steepest monthly fall witnessed since January. The weaker-than-expected results point to underlying pressures impacting consumer confidence and purchasing drop in retail activity was primarily due to reduced purchases of motor vehicles (down 3.5%), which had previously seen a surge as consumers rushed to buy ahead of potential tariff increases. Building materials and gasoline also posted notable declines of 2.7% and 2%, respectively, adding to the broader weakness. Out of 13 major retail categories tracked by the Commerce Department, more than half reported lower sales in threats and geopolitical tensions appear to be taking a toll on consumer sentiment. The earlier spike in March sales now looks like a response to anticipated economic headwinds rather than the beginning of a sustained spending wave. With both global and domestic uncertainties mounting, it is prudent to invest in retail stocks — Sprouts Farmers Market, Inc. SFM, Urban Outfitters, Inc. URBN, BJ's Wholesale Club Holdings, Inc. BJ and Costco Wholesale Corporation COST — that are better positioned to navigate shifts in consumer behavior. Image Source: Zacks Investment Research Sprouts Farmers, operating in a highly fragmented grocery industry, is a compelling option. The company has adopted a multifaceted approach to expand its customer base and cater to evolving consumer preferences. Through product innovation, targeted marketing and competitive pricing, Sprouts Farmers ensures that its offerings resonate with its diverse customer base. The company's commitment to offering fresh, natural and organic products aligns with the growing consumer demand for healthier food options. Its store expansion and growing private label mix reflect solid momentum ahead. The Zacks Consensus Estimate for Sprouts Farmers' current financial-year sales and earnings per share (EPS) implies growth of 13.7% and 35.5%, respectively, from the year-ago reported figure. SFM, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 16.5%, on average. You can see the complete list of today's Zacks #1 Rank stocks here. URBN's major brands — Anthropologie, Free People and Urban Outfitters — are showing momentum across both digital and physical channels, driven by curated assortments, brand-right pricing and improved marketing execution. Growth in newer concepts like FP Movement and Nuuly adds to URBN's multi-brand leverage, expanding its reach and deepening customer engagement. Across the board, a focus on customer acquisition, full-price selling and creative content is enhancing profitability. Strategic initiatives such as store optimization, supply-chain agility and international synergies further reinforce Urban Outfitters' long-term growth Zacks Consensus Estimate for Urban Outfitters' current financial-year sales and EPS suggests growth of 8.5% and 22.2%, respectively, from the year-ago reported figure. URBN, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 29%, on average. (See the Zacks Earnings Calendar to stay ahead of market-making news.) BJ's Wholesale continues to demonstrate strong performance, fueled by its strategic focus on membership growth and digital innovations. The company remains committed to enhancing omnichannel capabilities and providing value to customers. These endeavors have contributed to growth in membership signups and renewals, resulting in higher membership fee income. Offering members convenient options such as same-day delivery, curbside pick-up, and buy online and pick up in-club, the company ensures an engaging and seamless digital shopping experience. BJ's Wholesale has been steadily increasing its footprint, targeting high-growth regions and underserved markets. The Zacks Consensus Estimate for BJ's Wholesale's current financial-year sales and EPS suggests growth of 5.5% and 6.2%, respectively, from the year-ago reported figure. BJ, which carries a Zacks Rank #3 (Hold), has a trailing four-quarter earnings surprise of 17.7%, on average. Costco has navigated market ups and downs effectively, driven by strategic investments, a customer-centric approach, merchandise initiatives and a strong emphasis on memberships. By identifying untapped markets and tailoring offerings to customer preferences, Costco has deepened its market presence. The company's high membership renewal rates, efficient supply chain management and bulk purchasing power ensure competitive pricing and foster strong customer Zacks Consensus Estimate for Costco's current financial-year sales and EPS calls for growth of 8% and 12%, respectively, from the year-ago reported figure. COST, which carries a Zacks Rank #3, has a trailing four-quarter earnings surprise of 0.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
