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.

Using this item

Private collection
Photograph by Carl Walrond

This item has been provided for private study purposes (such as school projects, family and local history research) and any published reproduction (print or electronic) may infringe copyright law. It is the responsibility of the user of any material to obtain clearance from the copyright holder.

All images & media in this story

How to cite this page:

Paul Dalziel, 'Spending in the economy - Spending and investing', Te Ara - the Encyclopedia of New Zealand, (accessed 1 July 2022)

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