Deloitte Reports Decline in Business Investment Amid Economic Uncertainty
Economic Slowdown and Rising Costs Impact Business Profits
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According to Deloitte Access Economics' latest Investment Monitor report, the outlook for business investment in Australia has deteriorated over the past year.
The economic slowdown has adversely affected business revenues, particularly in sectors reliant on discretionary consumer spending, such as hospitality and retail.
Sheraan Underwood, associate director and lead author of the report, highlighted that operating costs continue to rise. Labour costs are above their long-term average and are expected to remain elevated through 2025. Additionally, non-labour expenses, including energy and insurance, are increasing, further squeezing profit margins.
This challenging environment of slowing demand and escalating costs is beginning to erode business profits. Companies are facing difficult decisions regarding investment and expansion, which could have broader implications for the Australian economy.
For individuals, this trend may translate into cautious business practices, potential slowdowns in hiring, and restrained wage growth. Staying informed about these developments can help Australians make proactive financial decisions in response to the evolving economic landscape.
Published:Monday, 8th Dec 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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