Australia: Firms plan to spend more-than-expected, July retail sales flat
|Today's Australian Q2 capex (private capital expenditure) shows a reading of +-5.4% q/q vs -4.2% expected and -5.2% last. Australia Q2 plant/machinery capex increased to 2.8 % vs prev -0.5 %, while Q2 building capexd decrease to -10.6 % vs prev -7.9 %. As per Australian firms, they plan to spend A$105.2b in 2016-17 vs est. of A$97b. Meanwhile, Australia's July retail sales came at 0% m/m vs 0.3% expected and 0.1% last.
JUNE KEY POINTS - CAPEX
ACTUAL EXPENDITURE (VOLUME TERMS)
The trend volume estimate for total new capital expenditure fell 3.8% in the June quarter 2016 while the seasonally adjusted estimate fell by 5.4%.
The trend volume estimate for buildings and structures fell by 7.0% in the June quarter 2016 while the seasonally adjusted estimate fell by 10.6%.
The trend volume estimate for equipment, plant and machinery rose by 1.9% in the June quarter 2016 while the seasonally adjusted estimate rose by 2.8%.
EXPECTED EXPENDITURE (CURRENT PRICE TERMS)
This issue includes the seventh estimate (Estimate 7) for 2015-16 and the third estimate (Estimate 3) for 2016-17.
Estimate 7 for 2015-16 is $127,455m. This is 15.4% lower than Estimate 7 for 2014-15. Estimate 7 is 0.2% higher than Estimate 6 for 2015-16.
Estimate 3 for 2016-17 is $105,173m. This is 9.1% lower than Estimate 3 for 2015-16. Estimate 3 is 15.2% higher than Estimate 2 for 2016-17.
JULY KEY POINTS - RETAIL SALES
CURRENT PRICES
The trend estimate rose 0.1% in July 2016. This follows a rise of 0.1% in June 2016 and a rise of 0.1% in May 2016.
The seasonally adjusted estimate was relatively unchanged (0.0%) in July 2016. This follows a rise of 0.1% in June 2016 and a rise of 0.1% in May 2016.
In trend terms, Australian turnover rose 2.7% in July 2016 compared with July 2015.
The following industries rose in trend terms in July 2016: Cafes, restaurants and takeaway food services (0.5%), Food retailing (0.1%), Other retailing (0.4%) and Clothing, footwear and personal accessory retailing (0.6%). Household goods retailing (-0.4%) and Department stores (-0.9%) fell in trend terms in July 2016.
The following states and territories rose in trend terms in July 2016: Queensland (0.2%), New South Wales (0.1%), South Australia (0.3%) and Tasmania (0.2%). Victoria (0.0%), Western Australia (0.0%) and the Australian Capital Territory (0.0%) were relatively unchanged. The Northern Territory (-0.4%) fell in trend terms in July 2016.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.