Are New Zealand firms more reluctant to invest? This NZIER Insight examines whether businesses have become more hesitant to commit to major capital projects and whether that signals a broader shift in firm risk appetite. We explore how investment intentions, liquidity positions, borrowing costs, and credit conditions have influenced business investment behaviour in recent years.
The findings point to a more cautious investment environment, with firms appearing to place greater value on flexibility and stronger balance sheets. This matters because business investment is central to capital renewal, technology adoption, productivity growth, and future living standards in New Zealand.