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Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Thursday, September 18, 2025, and here are five stories you should know about. Pressure's on the Reserve Bank to act more aggressively to cut official interest rates, after key growth data showed the economy performed far worse than anyone predicted over the June quarter. New Zealand's economy shrank sharply, with gross domestic product down 0.9 percent, worse than market forecasts of a 0.4 percent fall and the Reserve Bank's prediction of a 0.3 percent drop. Stats NZ says the decline was broad-based, with 10 of 16 industries contracting. Manufacturing fell 3.5 percent and construction dropped 1.8 percent. Per capita GDP fell 1.1 percent, and the annual decline was 1.1 percent. Swap rates and the New Zealand dollar also fell on the release. GDP has now declined in three of the past five quarters, following a revised March quarter increase. Elsewhere, the US Federal Reserve has cut interest rates by 25 basis points, moving the benchmark range to between 4 percent and 4.25 percent. It's the first reduction this year, with officials citing slower job gains and rising employment risks. Chairman Jerome Powell says the Fed remains committed to independence from politics. New Governor Stephen Miran, formerly Trump's adviser, dissented, preferring a larger cut. The decision followed a nine-month pause on rate changes. The Fed lifted its 2025 growth outlook to 1.6 percent while leaving unemployment and inflation forecasts unchanged. Eleven members of the Federal Open Market Committee supported the cut. In other news, the Government will invest up to 70 million dollars over seven years to support artificial intelligence research through the new Advanced Technology Institute. Science, Innovation and Technology Minister Shane Reti says the funding will back ambitious proposals and foster partnerships between researchers and industry. The allocation comes from Budget 2025, with funding beginning July 2026. Last month, concerns were raised about cuts to existing research grants and the closure of Callaghan Innovation. Reti says the investment will build capability, commercialise projects, and create jobs while supporting sectors such as healthcare and agriculture with advanced AI applications. Meanwhile, administrators recommend Kitchen Things and related companies be liquidated, after reporting debts of more than 16.6 million dollars owed to 396 creditors. The group, which includes Applico and Appliance Works, entered voluntary administration and receivership on August 20. Administrators George Bannerman and Rees Logan of BDO Auckland say no deed of company arrangement was proposed, leaving liquidation in creditors' interests. ASB is owed 9.9 million dollars as sole secured lender, while 124 workers are owed 883 thousand dollars. Business revenue fell from 110 million in 2020 to 50 million in 2025, with net losses reported consecutively. Finally, New Zealand's best workplaces have been recognised in the latest "Great Place to Work" rankings. Realestate dot co dot NZ topped the small business category, while Hilton led the medium and large business category. Specsavers placed second, followed by Salesforce, DHL and Rothbury Group. Cisco ranked second in small businesses, ahead of Robert Half, Medtronic Australasia and Franklin Smith. The awards are based on employee surveys and independent audits. Great Place to Work general manager Rebecca Moulynox says organisations with strong trust, wellbeing support, and open culture keep staff engaged and productive. Randstad issued a separate ranking in June, naming Air New Zealand first. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, s...See omnystudio.com/listener for privacy information.