The latest trade figures show imports of capital goods surged 26% in the September quarter after an 8.7% increase in the June quarter.
The $564 million in capital goods imports in the latest quarter included $403 million of plant and machinery and $161 million of transport equipment.
The government statistician says imports of intermediate goods rose 4.8%, including a 14% rise in crude oil and a 12% increase in parts and accessories for capital goods, while imports of consumption goods were up 4%.
Bank of New Zealand economist Doug Steel says he has been expecting rising business confidence to translate into more business investment for some time now.
He says business confidence strength has been suggesting a pick up in investment for about six months and in recent times investment intentions have picked up quite strongly.
Mr Steel says the latest figures suggest that importers are expecting firms to act on that and if the pick-up in investment continues, strong growth in capital goods is expected over the coming year.
He says the pick-up is quite broad based and is not only a construction increase in Christchurch and in the area of residential building.
Mr Steel says it includes non-residential building and plant and machinery equipment and the investment surge is likely to continue for some time.
