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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.
AUSTRALIA DATA
Q2 national account components have so far printed weaker than expected with capex today down 2.2% q/q, yesterday’s construction work up only 0.1% q/q and real retail sales contracting 0.3% q/q. the investment series saw upward revisions to Q1 though. They are painting a weak growth picture for Q2. GDP prints on September 4 with inventories on September 2 and net exports/government spending September 3.
- Excluding the mining sector capex was even weaker falling 3.6% q/q, while mining rose 1.5%.
- Q2 machinery & equipment investment fell 0.5% q/q after rising 3.7% and is now up 3.9% y/y. This series has a very high correlation with GFCF – machinery & equipment in the national accounts.
- The ABS reports that weak equipment investment was concentrated in the retail sector (-25.9%) which cut back “in response to economic conditions in the retail industry”.
- Investment in building & structures was the main driver of weak Q2 capex falling 3.8% q/q after rising 0.4% q/q to be down 2.8% y/y, the lowest in over three years. Non-mining sank 7.7% q/q due to reductions in engineering and transport infrastructure projects.
- Investment intentions for FY25 were revised up 10.3% since the second estimate driven by the manufacturing sector.
Australia real 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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