Australia's Q2 Capex headline arrives at -2.5% vs +0.6% expected

Dhwani Mehta FXStreet

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.

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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