The US Federal Reserve surprised economists with its first interest rate cut in four years.

Rates have gone down by 0.5 percent to about 4.8 percent - a significant shift after two years of high rates designed to tame inflation.

Fisher Funds expert Sam Dickie says the markets responded well to this move after pricing in potential cuts.

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Experts say today's GDP figures paint a dire picture of our economy - and it's unlikely things will recover right away.

New data shows GDP dropped 0.2 percent in the second quarter of 2024.

NZ Herald business editor at large Liam Dann explains why the economy is unlikely to recover in the coming months.

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One expert says today's GDP figures paint a bleak picture of the economy - but there's light at the end of the tunnel.

Stats NZ revealed this morning a 0.2 percent contraction for the three months to June, following 0.1 percent growth in the March quarter.

Kiwibank economist Jarrod Kerr says it's likely the economy won't start growing again until late 2025.

"The Reserve Bank's put a stake in the ground - they started cutting in August - and I think that'll mark the turning point."

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Australia's national unemployment rate held steady at 4.2 percent in August.

The number of employed people grew by 47,500, and the number of unemployed people declined by 10,500, according to reports.

Australian correspondent Murray Olds says this will encourage the Reserve Bank to hold off on cutting interest rates when they next meet.

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New reports confirm at least 68 percent of small and medium Kiwi businesses currently have no plans to use AI.

Data from NZIER's Quarterly Survey of Business Opinion says many of these businesses cited a lack of understanding and perceived absence of value as the barriers to AI adoption.

Spark Head of Data Matt Bain says the required training to properly use AI has put plenty of companies off.

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Synlait's two biggest shareholders have brought it back from the brink.

Shareholders today approved a $218 million capital injection from Bright Dairy and A2 Milk.

NZ Shareholders Association CEO Oliver Mander says some shareholders were reluctant ahead of this vote - but plenty were on board.

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Consumer confidence has picked up in recent months - but there's still concerns about the future from some.

The Westpac McDermott Miller Consumer Confidence survey for the September quarter rose 9 points to 90.8 points.

Westpac senior economist says households will be in a better mood as interest rates come down for 2025 - but it'll take a while before Kiwis see the increase in their back pockets.

"I think they're going to start to feel a bit more optimistic going into 2025 - some of those headwinds have been pretty tough for the last few years and there's a big relief coming through."

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There's concerns about how the closure of a South Auckland paper mill will affect kerbside recycling.

Oji Fibre Solutions will shut up just a week before Christmas - with the loss of 75 jobs.

It's the latest manufacturing firm challenged by high electricity costs, following Winstone Pulp International closing two mills.

Auckland Council waste solutions general manager Parul Sood says paper and cardboard collected from homes hasn't been going to the Penrose mill.

"It goes to various markets in Asia, because they sell paper and cardboard as a commodity in the markets - and we get a good price for it."

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