Aussie capex preview - TDS

Ross J Burland FXStreet

Analysts at TD Securities explained that they think Q2 private sector capex will add modestly to Q2 GDP.

Key quotes:

"Headline capex to rise by +0.8%/q (mkt +0.6%) and the part that feeds into GDP - plant and equipment - is expected to lift by a modest +0.5%/q although we see upside risk as capital imports were buoyant in the quarter."

"We also see (1) the final 2017-18 spend for investment (2) the third estimate for 2018-19 plans, where we expect a recovery in non-mining investment (manufacturing and services) after a weak prior report, for a total spend of $A103bn (mkt $A100.1b)."

"Finally, building approvals for July are released, and after a lot of volatility we look for a flat print (mkt -2.0%) with ample two-way risk."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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