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Signs that rate rises are crunching business investment

Michael Read
Michael ReadEconomics correspondent

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A sharp fall in imports of goods such as industrial equipment and high-tech machinery could signal that businesses are finally scaling back investment in response to high interest rates.

Business investment has remained solid this year despite the pressure from high interest rates, increasing 8 per cent in the 12 months to June 2023 and defying Reserve Bank of Australia forecasts of a growth slowdown.

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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com

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    Original URL: https://www.afr.com/policy/economy/signs-that-rate-rises-are-crunching-business-investment-20231005-p5ea0d