Story: Spending in the economy

Private and public investment

Private and public investment

Fixed capital formation is spending on assets such as buildings, roads or machinery. Such spending can fluctuate markedly over time. During the Second World War, for example, construction slowed. After the war it surged, as deferred work was carried out, and a booming economy encouraged new spending.

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Photograph by Carl Walrond

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How to cite this page:

Paul Dalziel, 'Spending in the economy - Spending and investing', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/photograph/21627/private-and-public-investment (accessed 1 July 2022)

Story by Paul Dalziel, published 11 Mar 2010, updated 16 Sep 2016