Home topics news via pexels News News Six in ten Australian businesses are holding back on investment Yajush Gupta January 22, 2026 CreditorWatch’s survey uncovers stark sectoral divides reshaping Australia’s business landscape in 2026. What’s happening: Rising costs constrain 72% of businesses, whilst 83% report significant changes in customer behaviour including slower approvals, tighter budgets and longer payment terms. Why this matters: Younger businesses under five years old are driving expansion momentum, whilst traditional sectors like construction face genuine headwinds. The divergence between headline optimism and operational caution suggests businesses are distinguishing between longer-term belief in Australia’s economy and near-term investment discipline. When asked about their outlook, most Australian business leaders project confidence. Three in four are optimistic about growth over the next year. Yet beneath that headline optimism lies a more complex decision-making process: 63% of business decision-makers are postponing major investments until conditions improve. This is not pessimism. It is pragmatism. “Business leaders are demonstrating remarkable adaptability in a challenging environment. It’s encouraging to see how many continue to feel positive about the Australian economy over the next year and how many are identifying positive indicators within their own operations,” said Patrick Coghlan, CreditorWatch CEO, commenting on the survey of more than 1,000 business leaders. “While leaders are pacing major expenditure, they’re certainly not standing still. They’re finding opportunities to innovate, expand and deliver value for their customers even as conditions fluctuate,” Coghlan adds. The constraint is real. Rising costs are inhibiting growth for 72% of businesses surveyed.