A record rise in the value of imports last month could suggest more businesses are making investments.
The country had the largest trade deficit ever for an August month. Official figures show a deficit of $1.2 billion last month compared with a deficit of more than $800 million in August last year.
On an annual basis, the deficit was $2.1 billion.
The value of exported goods edged up nearly 1% to $3.3 billion, led by logs and wood although dairy exports fell 1.8%.
Imported goods, including a drilling platform, rose nearly 10% to $4.5 billion.
Excluding the drilling platform, the deficit would still be the second largest recorded for any August month.
Deutsche Bank chief economist Darren Gibbs says the deficit was larger than expected and strong domestic demand is bringing in more imports.
He says the high exchange rate is making it difficult for New Zealand firms to compete with imports.
Mr Gibbs says there have been strong sales in motor vehicles and a pick-up in capital spending and New Zealand does not have much of a capital goods industry, so those tend to be imported.
He says over the last couple of months there have been some one-offs which have driven up the import figures including a drilling platform arriving in the country.
Mr Gibbs says the August figures would suggest that businesses are starting to invest and the business sentiment surveys have been optimistic for some time.
He expects the deficits last month and in July will contribute to a wider annual current account deficit in the third quarter.
