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Repeats Story Initially Transmitted at 01:59 GMT Aug 31/21:59 EST Aug 30
--Q2 Capex Also Higher Than Expected
     SYDNEY (MNI) -  - From Private New Capital Expenditure and Expected
Expenditure data for the second quarter released by the Australian Bureau of
Statistics on Thursday:
                                       Q2  2017-18 Estimate 3
-------------------------------------------------------------
                             % Change Q/Q          In A$, Bln
Total                                +0.8               101.7
MNI Median                           +0.2                95.0
Range                      (-2.0 to +2.5)     (88.5 to 100.0)
Mining                               -2.8               +32.1
Manufacturing                        +1.4                +8.3
Other Industries                     +2.8               +61.4
Buildings and Structures             -0.6               +61.3
Equipment,Plant,Machinery            +2.7               +40.4
     FACTORS: Total capital expenditure rose for the second straight quarter due
to an increase in services and manufacturing capex that offset another quarter
of fall in mining capex. Services capex rose for the third consecutive quarter,
and posted the largest increase in five quarters while manufacturing capex
growth slowed after two strong quarterly increases. 
     Estimate three for 2017-18 capex was higher than expected due mainly to a
19.4% jump in services capex. Estimate three for manufacturing capex was also
24.2% higher than estimate two, and for mining capex it was 12.8% higher. 
     TAKEAWAY: The estimate three for 2017-18 was 17.6% higher than estimate 2
and outside the range predicted by economists in MNI poll. Economists at TD
Securities were the only ones with a forecast A$100 billion that was closest to
the outcome.
     The 17.6% upgrade surpasses the 15.7% revision between estimate two and
estimate three seen in 2016-17, according to a note published by Westpac on the
capex preview. This would make it the largest upgrade since 2010-11 and prior to
that 2005-06. 
     The main contributor to the increase was services capex which suggest the
non-mining recovery is gaining further traction and bodes well for the economy's
growth prospects.
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MTABLE]

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