SHARE

Share this news item!

Deloitte Reports Decline in Business Investment Amid Economic Uncertainty

Economic Slowdown and Rising Costs Impact Business Profits

Deloitte Reports Decline in Business Investment Amid Economic Uncertainty?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Finance News

What the Latest Adviser Exam Results Mean for Australians
What the Latest Adviser Exam Results Mean for Australians
07 Jul 2026: Paige Estritori
Australia’s financial advice sector has entered the new financial year with a mixed signal: new advisers are continuing to pass the professional exam at a steady rate, but the overall adviser pool remains under pressure. - read more
RBA Pause Gives Borrowers Breathing Space, Not Relief
RBA Pause Gives Borrowers Breathing Space, Not Relief
23 Jun 2026: Paige Estritori
The Reserve Bank of Australia has kept the cash rate on hold at 4.35% at its June meeting, giving households a pause after three increases earlier in 2026. For mortgage holders, the decision is welcome, but it is not the same as relief. The RBA remains concerned that inflation is still too high, while global pressures, including oil supply disruption, are complicating the outlook. - read more
Australian Unity to Reduce Workforce by 195 Positions
Australian Unity to Reduce Workforce by 195 Positions
16 Jun 2026: Paige Estritori
Australian Unity has announced a reduction of 195 positions within its workforce, attributing the decision to underperformance linked to delays in government support for its Home Health platform and the integration of several businesses. This move is part of a broader strategic review aimed at simplifying operations and enhancing efficiency. - read more
Australians Access Minimal Home Equity Despite Significant Availability
Australians Access Minimal Home Equity Despite Significant Availability
16 Jun 2026: Paige Estritori
A recent study by Deloitte has revealed that Australian homeowners have accessed only 1% of the $600 billion available in home equity through structured equity release products, such as reverse mortgages. This indicates a significant underutilisation of available financial resources among eligible households. - read more
Paul Woodburn Named Lead Superannuation Ombudsman at AFCA
Paul Woodburn Named Lead Superannuation Ombudsman at AFCA
16 Jun 2026: Paige Estritori
The Australian Financial Complaints Authority (AFCA) has appointed Paul Woodburn as its new lead ombudsman for superannuation, succeeding Heather Gray, who served in the role since 2020. Woodburn commenced his five-year term on 25 May 2026, bringing over two decades of experience in superannuation, funds management, and financial services. - read more

MoneyTips Subscription Articles

How to Create a Monthly Budget That Works for You
How to Create a Monthly Budget That Works for You
Budgeting is an essential skill for anyone looking to take control of their personal finances. It serves as the foundation for achieving financial stability and reaching your monetary goals. Yet, managing a budget can seem daunting, especially if you're unsure where to start or how to maintain one. In this article, we'll guide you through crafting a monthly budget that truly works for you, ensuring you not only manage your money effectively but also stress less about financial uncertainties. - read more
Understanding the Philosophy of Insurance: Risk Management for Society
Understanding the Philosophy of Insurance: Risk Management for Society
Welcome to the fascinating world of insurance—a concept that intertwines with our everyday lives in ways we might not even realize. Whether it's car insurance, home insurance, or health cover, these policies promise us a safety net amidst life's uncertainties. - read more
Diverse Revenue Streams: Innovative Ideas to Expand Your Cafe Business’s Offerings
Diverse Revenue Streams: Innovative Ideas to Expand Your Cafe Business’s Offerings
If you're a cafe owner, you know that the hospitality industry can often be unpredictable. A steady stream of customers can quickly dry up due to factors like weather, economic downturns, or even a new competitor opening nearby. - read more
Cost-Cutting 101: Effective Strategies for Reducing Operational Expenses
Cost-Cutting 101: Effective Strategies for Reducing Operational Expenses
In today's fast-paced business environment, understanding the importance of cost-cutting is crucial. Operational expenses can quickly add up, impacting the bottom line and overall financial health of a business. For many Australian businesses, maintaining a competitive edge means keeping a close eye on costs while striving for efficiency. - read more
Saving for Your Child's Future: Education Funds and Beyond
Saving for Your Child's Future: Education Funds and Beyond
As young families embark on the journey of raising children, financial planning becomes an essential tool to ensure a stable future. With the rising costs of education and living expenses, it's crucial to put plans in place early. By doing so, families can alleviate stress and focus on what matters most: their children's growth and development. - read more