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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUSTRALIA DATA
Q2 Australian capital expenditure was stronger than expected rising 2.8% q/q after an upwardly revised 3.7% the previous quarter. This left annual capex growth at 10.8% y/y up from 7.2% and the strongest since Q2 2021. Both building and machinery & equipment investment are robust but the former is driving the strength. Investment is needed to try and boost productivity.
- Building capex rose 3.5% q/q to be up 15% y/y after 3.2% and 8.3% in Q1, consistent with the Q2 construction data. This component has been boosted by both mining, especially related to lithium, and non-mining projects.
- Machinery & equipment rose 1.9% q/q to be up 6.4% y/y following 4.2% and 5.9% in Q1. The Q1 quarterly rise was revised up 0.5pp, but that is likely to have a negligible impact on GDP revisions. The ABS noted that machinery & equipment capex has been boosted by the easing in supply chain pressures improving availability especially of vehicles, and the expiry on June 30 of a “full expensing tax incentive”. So there could be payback in H2 2023.
- Investment intentions for FY2024 were revised up 14.5% to be 7.1% higher than the same estimate for FY2023. Building was revised up 13.6% to be up 8.7% y/y and machinery & equipment +15.9% to 4.6% y/y.
Australia capital expenditure y/y%
Source: MNI - Market News/ABS
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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