MNI 5 THINGS. Australia Private Capex Seen Softer In Q1

By Lachlan Colquhoun

     SYDNEY (MNI) - Australian Private New Capital Expenditure Data for the

first quarter of 2019 is due for release on Thursday. Here are five things to

look for in the data release from Australian Bureau of Statistics.

Expecting a slowdown. 

Total new capital expenditure increased by 2.0% in the last quarter of 2018 Q/Q,

but is expected to soften and come in at around 1% in tomorrow's release

Watching the estimate. 

In the last release the ABS estimated that capex for 2019/20 would total A$92.1

billion. Tomorrow's data will reveal more on the accuracy of that estimate.

Infrastructure to the rescue as building softens. 

Capex on building and structures was up 3.2% in the December quarter and buoyed

the overall result. While the housing and construction market has weakened,

infrastructure investment held up strongly.

Where is mining investment? 

Investment in plant and equipment gained a modest 0.7% in the December quarter

and analysts are looking to a rebound in mining sector investment for a lift.

This is despite flat conditions for business investment.

Important for GDP data. 

Investment in plant and equipment feeds into GDP data, and Q1 data will be

released next week. The market is expecting growth to fall back to around 2%,

and tomorrow's result will give some indication on a likely number.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$,M$L$$$]