In 2008, New South Wales private business investment reached a record high of $47.7 billion.

New South Wales has recorded strong growth in business investment. Private business investment grew by 10.3% in the year to December 2008 and long term growth in the five years to December 2008 has also averaged 10.3% per annum. Investment in new engineering construction grew by 18.6% in 2008, largely reflecting investments in mining, energy and transport related infrastructure, while new machinery and equipment expenditure grew by 11.5% and was the largest contributor to the overall growth in business investment.

In 2008 New South Wales accounted for almost one quarter of Australia’s business investment. New South Wales has the largest share of business investment in machinery and equipment and intangible assets, such as computer software, mineral exploration rights and the intellectual property of creative industries.

The industries in New South Wales which recorded the highest growth in capital expenditure on non-dwelling construction, machinery and equipment were transport and storage, manufacturing, wholesale and mining, reflecting the relative strength of the capital-intensive goods producing sector in 2008. The retail industry also recorded strong increases in 2008.

Business investment is expected to weaken in 2008-09 as a result of the global financial crisis and the downturn in the world economy. The State and federal government’s increased infrastructure commitments and capital expenditure incentives will continue to build the capacity of the economy and provide support to business investment.