Key insights from our latest report:

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1. Business margins look to still be under pressure

In May 2024, a net +12% of businesses planned to raise prices.

In May 2025, that has flipped to –5%, the weakest result since February this year.

Why it matters: Costs continue to rise but if businesses are signalling minimal, if any, price rises ahead this means further compression of margins and perhaps profitability.

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2: Revenue optimism is ahead of last year

In May 2024, a net +11% of businesses expected their revenue to increase.

In May 2025, that number now stands at +37%.

Why it matters: Confidence about better revenue implies hope for employment and capital spending growth in the coming year.

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3: Investment in plant and equipment remains positive

In May 2024, businesses were showing net negative intentions to invest in plant and equipment.

But by May 2025, those intentions have turned positive since November last year and remain so.

Why it matters:  Growth in productivity and ultimately people’s incomes derives from investment in infrastructure, skills, and capital equipment and systems.