Leaders of Australian industry are scaling back long-term investment plans as they remain pessimistic about the country’s economic prospects for 2025.
The latest Industry Expectations survey, conducted by national employer organisation the Australian Industry Group (Ai Group) found business leaders where prioritising short-term productivity gains.
Ai Group Chief Executive Innes Willox said many believed clean energy and housing construction targets would not be met and the country was poorly placed to meet productivity and competitive challenges.
“They are highly concerned about continued weak market conditions and see little relief on the horizon,” Mr Willox said.
“The Industry Expectations survey, which was conducted just before Christmas, must serve as a wake up call to policy makers in the weeks before the next election that expectations for growth among those who make decisions crucial for business growth, investment and employment are very weak.”
He said industry leaders were concerned that 2025 would see a repeat of last year with workforce and skill shortages, and inflation pressures.
“Driving productivity is seen as particularly difficult with the Government’s workplace relations measures being seen as a clear handbrake on making businesses competitive and wage rises sustainable.”
Mr Willox said expectations for 2025 were relatively weak, with 44 percent of industry leaders expecting business conditions to be weaker than 2024, while 30 percent expected them to be better.
“These are very similar to last year when we saw the lowest outlook since the end of the mining boom. Last year saw the private sector slow hiring and begin significant job shedding in response to our economic conditions.
“Controlling cost pressures caused by lingering inflation and high energy prices are a top priority because, given weak market conditions, they are eroding business margins and profitability.”
Read the full report: Australian Industry Outlook for 2025.