Australia's CAPEX: 2nd estimate for 2018/19 lower than-expected

Dhwani Mehta FXStreet

Australian capex (private capital expenditure) for Q1 shows a capex 'headline' of +0.4% q/q vs 0.7% expected and -0.2% last. The 2nd estimate for 2018/19 investment expectations came at 87.7$ bn, which is a weak result. As per Q1 building capex, it came at -1.3% q/q, while Q1 plant and machinery was -+2.5% q/q. Lastly, the 2017/18 6th estimate is currently projected at 117.50$ mn.

KEY POINTS (Source: Australia Bureau of Statistics)

ACTUAL EXPENDITURE (VOLUME TERMS)

The trend volume estimate for total new capital expenditure rose by 0.5% in the March quarter 2018 while the seasonally adjusted estimate rose by 0.4%.

The trend volume estimate for buildings and structures fell by 0.6% in the March quarter 2018 while the seasonally adjusted estimate fell by 1.3%.

The trend volume estimate for equipment, plant and machinery rose by 1.9% in the March quarter 2018 while the seasonally adjusted estimate rose by 2.5%.

EXPECTED EXPENDITURE (CURRENT PRICE TERMS)

This issue includes the sixth estimate (Estimate 6) for 2017-18 and the second estimate (Estimate 2) for 2018-19.

Estimate 6 for 2017-18 is $117,501m. This is 3.8% higher than Estimate 6 for 2016-17. Estimate 6 is 2.8% higher than Estimate 5 for 2017-18.

Estimate 2 for 2018-19 is $87,740m. This is 1.4% higher than Estimate 2 for 2017-18. Estimate 2 is 5.7% higher than Estimate 1 for 2018-19.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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