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.
The Reserve Bank of Australia's rate hiking campaign has failed to dampen corporate capital expenditure plans for 2023, offering support for the economy as household spending is expected to slow next year.
While actual capex fell 0.6% q/q in the third quarter and will detract from third quarter GDP, the fourth estimate of 2022-2023 plans rose 5.6% to AUD155.7 billion. That's 5.6% higher than the third estimate and 12.4% higher than the fourth estimate for 2021-2022 at this time last year.
The robust capex outlook was underpinned by a 10.4% increase in planned spending on equipment, plant and machiner. Non-residential construction capex plans increased 2.3% as the industry continues to work its way through a backlog of work caused by supply constraints, a tight jobs market and bad weather. The estimate for mining capex was raised 3%, less than half the 6.8% increase recorded for non-mining capex. The RBA is expected to raise rates by 25bp to 3.1% when it sits for its final board meeting of the year next Tuesday.
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.