AUSTRALIA DATA: Private Capex Soft In Q2
Private sector capex remained soft in Q2 with volumes rising 0.2% q/q, driven by the non-mining sector, after falling 0.2% q/q to be up only 1.7% y/y although this was an improvement from Q1’s -0.6% y/y. There has been talk that investment needs to rise in order to see progress on productivity, which has been weak. Q2 GDP is released September 3 with inventories September 1, and net exports and public demand contributions September 2.
- Private investment in buildings and structures rose 0.2% q/q, the fourth consecutive quarterly rise, to be up 4.3% y/y after 0.6% y/y in Q1. There was growth across transport, warehousing, telecoms and manufacturing.
- Machinery & equipment volumes remained weak rising only 0.3% q/q after two quarterly contractions. It is now down 1.1% y/y after -2.1%. There was strong investment in data centres and retail supply automation.
- Non-mining capex rose 0.9% q/q while mining fell 1.4% q/q with equipment up 0.5% q/q and down 0.8% respectively. Building rose 1.4% q/q and fell 1.6% respectively.
- Capex values are planned to rise over the current financial year with the third estimate revised up 12% with equipment +17.8% and building +8.4%. FY25 saw growth of 3.8%.
Australia real private capital expenditure y/y%
Source: MNI - Market News/ABS
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