Australia seasonally adjusted capex estimate fell by 0.2% in Dec quarter

Omkar Godbole FXStreet Contributor

The seasonally adjusted trend volume estimate for total new capital expenditure fell 0.2 percent quarter-on-quarter in Q4 2017, according to Australian Bureau of Statistics. The markets were expecting capex growth of 0.9 percent. The big miss in the headline figure isn't boding well for the Aussie dollar.

Meanwhile, the first estimate for 2018/19 is AUD 84 billion vs. Reuters forecast of AUD 86 billion.

December key points (Source: ABS)

Actual Expenditure (Volume terms)

The trend volume estimate for total new capital expenditure rose by 0.8% in the December quarter 2017 while the seasonally adjusted estimate fell by 0.2%.
The trend volume estimate for buildings and structures fell by 0.2% in the December quarter 2017 while the seasonally adjusted estimate fell by 2.1%.
The trend volume estimate for equipment, plant and machinery rose by 2.1% in the December quarter 2017 while the seasonally adjusted estimate rose by 2.2%.

Eexpected Expenditure (Current Price terms)

This issue includes the fifth estimate (Estimate 5) for 2017-18 and the first estimate (Estimate 1) for 2018-19.
Estimate 5 for 2017-18 is $114,599m. This is 2.5% higher than Estimate 5 for 2016-17. Estimate 5 is 4.9% higher than Estimate 4 for 2017-18.
Estimate 1 for 2018-19 is $84,044m. This is 3.5% higher than Estimate 1 for 2017-18.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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