Key insights from our latest report
After surviving to '25 many businesses outside the primary sector are finding this year to be substantially weaker than anticipated with regard to customer flows and general sentiment about the country.
This alongside an upward trend in input cost concerns may help explain the firm rise in worries about profitability over the past two months. The net 33% of businesses reporting profitability concerns is a record level for the two and a half year duration so far of our survey.
For the second month in a row a net 13% of businesses have reported that they do not plan to raise their selling prices in the coming year.
Four months ago, a net 1% were planning price rises, and this change tells us that the perceived deterioration in the economy and operating environments through winter has removed the thought that price hikes can be comfortably communicated to customer bases.
Despite the deep concerns about the economy this year a net 44% of businesses expect better revenue levels in a year's time.
These hopes may help explain a recovery in plans for spending on advertising along with a small lift in plans for eventually recruiting more staff. Overall though, measures of labour market strength remain mild.
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