Australia's Q2 Capex headline arrives at -2.5% vs +0.6% expected
|Australian capex (private capital expenditure) for Q2 shows a capex 'headline' of -2.5% q/q vs +0.6% expected and +0.4% last. The 3rd estimate for 2018/19 investment expectations came at AUD 102 bn, which is a weak result.
As per Q2 building capex, it came in at -3.9% q/q, while Q2 plant and machinery was -0.9% q/q. Lastly, the 2017/18 7th estimate is currently projected at AUD 118.93 mn.
KEY POINTS (Source: Australia Bureau of Statistics)
ACTUAL EXPENDITURE (VOLUME TERMS)
The trend volume estimate for total new capital expenditure fell by 0.6% in the June quarter 2018 while the seasonally adjusted estimate fell by 2.5%.
The trend volume estimate for buildings and structures fell by 2.1% in the June quarter 2018 while the seasonally adjusted estimate fell by 3.9%.
The trend volume estimate for equipment, plant and machinery rose by 1.3% in the June quarter 2018 while the seasonally adjusted estimate fell by 0.9%.
EXPECTED EXPENDITURE (CURRENT PRICE TERMS)
This issue includes the seventh estimate (Estimate 7) for 2017-18 and the third estimate (Estimate 3) for 2018-19.
Estimate 7 for 2017-18 is $118,927m. This is 4.0% higher than Estimate 7 for 2016-17. Estimate 7 is 1.0% higher than Estimate 6 for 2017-18.
Estimate 3 for 2018-19 is $101,997m. This is 1.1% lower than Estimate 3 for 2017-18. Estimate 3 is 16.1% higher than Estimate 2 for 2018-19.
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