Why the non-mining sector is holding back on investment

The non-mining sector's aversion to risk has frustrated the Reserve Bank, but it should come as little surprise due to its struggles in recent years.

Why isn’t the non-mining sector investing? The Reserve Bank of Australia is frustrated by a lack of ‘animal spirits’, but the aversion to risk is a rational and reasonable response to a financial crisis and the non-mining sector’s struggles over the past decade.

Although there has been progress, it will take a much lower dollar to get the non-mining sector investing with confidence.

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