Today's Q1 Australian capex (private capital expenditure) reading shows a capex of -5.2% q/q vs -3.5% expected and +1.8% last, revised upwards from +0.8%. Building capex was down 7.9% vs 3% expected, while plant/machinery was down 0.5% vs -2% expected. The 6th estimate for 2015/16 came in at $A126.8bn vs $124bn estimate and -17.8% y/y). Meanwhile estimate 2 for 2016/17 came in at $A89.2bn vs $82.6bn estimate 1 and -19.5% y/y last.
Key Points
ACTUAL EXPENDITURE (VOLUME TERMS)
The trend volume estimate for total new capital expenditure fell by 2.8% in the March quarter 2016 while the seasonally adjusted estimate fell by 5.2%.
The trend volume estimate for buildings and structures fell by 3.6% in the March quarter 2016 while the seasonally adjusted estimate fell by 7.9%.
The trend volume estimate for equipment, plant and machinery fell by 1.0% in the March quarter 2016 while the seasonally adjusted estimate fell by 0.5%.
EXPECTED EXPENDITURE (CURRENT PRICE TERMS)
This issue includes the sixth estimate (Estimate 6) for 2015-16 and the second estimate (Estimate 2) for 2016-17.
Estimate 6 for 2015-16 is $126,819m. This is 15.3% lower than Estimate 6 for 2014-15. Estimate 6 is 2.9% higher than Estimate 5 for 2015-16.
Estimate 2 for 2016-17 is $89,231m. This is 14.6% lower than Estimate 2 for 2015-16. Estimate 2 is 6.3% higher than Estimate 1 for 2016-17.
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