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:

Finance News

Albanese Stresses Economic Sovereignty Amid Global Unrest
Albanese Stresses Economic Sovereignty Amid Global Unrest
07 Apr 2026: Paige Estritori
In a recent address to the National Press Club, Prime Minister Anthony Albanese underscored the critical importance of economic sovereignty in bolstering Australia's national resilience, particularly in the context of escalating conflicts in the Middle East. This emphasis reflects the government's strategic focus on strengthening the nation's economic independence to navigate global uncertainties effectively. - read more
Australian Household Wealth Increases Amid Inflation Challenges
Australian Household Wealth Increases Amid Inflation Challenges
07 Apr 2026: Paige Estritori
Recent data reveals that Australian households experienced a 2.5% increase in wealth during the December quarter, amounting to an additional $453.7 billion. This growth occurred despite ongoing inflationary pressures, highlighting the resilience of household finances in the current economic climate. - read more
ASIC Bans Crypto Fund Director Following Company Failures
ASIC Bans Crypto Fund Director Following Company Failures
07 Apr 2026: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has disqualified Ashod Ohan Balanian from managing corporations for a period of five years. This action follows his involvement in three failed companies that operated a cryptocurrency fund, raising significant concerns about corporate governance and investor protection within the crypto sector. - read more
RBA Projects Mid-2026 Inflation Peak with Gradual Decline
RBA Projects Mid-2026 Inflation Peak with Gradual Decline
30 Mar 2026: Paige Estritori
The Reserve Bank of Australia (RBA) has projected that inflation will reach its peak in mid-2026, subsequently moderating to slightly above the midpoint of its 2-3% target range by mid-2028. This forecast suggests a gradual return to economic balance over the coming years. - read more
Fixed Income Investments: A Rising Star in 2026 Portfolios
Fixed Income Investments: A Rising Star in 2026 Portfolios
30 Mar 2026: Paige Estritori
As 2026 unfolds, fixed income allocations are becoming increasingly attractive to investors seeking stable returns. Experts from leading investment firms have highlighted this trend, noting a resurgence in bond yields and the potential for fixed income assets to provide reliable income streams. - read more

MoneyTips Subscription Articles

Maximise Your Superannuation: Strategies for a Comfortable Retirement
Maximise Your Superannuation: Strategies for a Comfortable Retirement
Superannuation, commonly known as 'super,' is a crucial part of planning for a comfortable retirement. It serves as a long-term savings measure, gradually increasing in value to support you once you stop working. But what exactly is superannuation? - read more
I Don’t Know What to Do as a Career: A Practical Checklist to Find Work That Fits Your Talents, Values, and Ambition
I Don’t Know What to Do as a Career: A Practical Checklist to Find Work That Fits Your Talents, Values, and Ambition
Feeling unsure about what to do as a career is more common than most people realise. Some people feel lost right after school or university. Others reach their late 20s, 30s or beyond and suddenly realise their current path does not feel right. Many people also experience career confusion after major life changes like relocation, burnout, redundancy, or personal growth. - 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
Investing 101: A Beginner's Guide for Australian Adults
Investing 101: A Beginner's Guide for Australian Adults
Investing can initially seem daunting, but it’s essentially the act of allocating money with the expectation of generating an income or profit over time. It's important because investing offers the potential for your money to grow and outpace inflation, ensuring you have a secure financial future. - read more
Understanding Financial Anxiety: What It Is and Why You Feel It
Understanding Financial Anxiety: What It Is and Why You Feel It
Financial anxiety is a type of stress specifically associated with financial matters. It can encompass worries about savings, debt management, and future financial security. This type of anxiety often impacts emotional well-being and can lead to physical symptoms such as headaches, insomnia, and elevated stress levels. - read more