Businesses hope for boom and more productivity but brace for surge in costs, 2degrees survey

Rising costs are still hurting businesses, but general optimism and investment intentions are increasing, according to the annual 2degrees Shaping Business report.

The survey, conducted across April and May, covered 506 business decision-makers – a group described as owners, CEOs, directors, general managers, or C-suite executives.

While the results indicated rising input costs, they also revealed an increase in optimism among businesses and a greater emphasis on productivity within them.

While business optimism was at its highest point recorded in the survey, 2degrees chief executive Mark Callander cautioned against reading too much into it.

“The optimism is coming off a really low base on the previous year,” Callander said.

“We all remember the ‘survive to 25’ tagline, right? Well, it’s ‘25.

“So last year you were saying ‘survive to ‘25’, you’re here in ‘25, so you’ve got to do something.”

In this year’s 2degrees survey, 52% of businesses said they planned to increase investment, up from 46% last year and 28% in 2023.

Businesses are also changing what they are investing in, compared to previous surveys, with more aiming for growth through productivity, including in AI.

A majority of businesses, 52%, said they planned to invest in business development, sales, and marketing, compared to 35% last year.

However, the survey revealed nearly a third of businesses faced cost increases of more than 40% over the past year, with electricity costs likely a key part of the story.

Read the full story on BusinessDesk.