Search ForexCrunch

Felicity Emmett, senior economist at ANZ, notes that the Australian Q4 Capex rose a solid 2% q/q with machinery & equipment spending rising a modest 0.7% and (in contrast to yesterday’s very weak construction work done numbers) private non-residential construction rose a strong 3.2%.

Key Quotes

“In even better news, the outlook remains strong. Non-mining firms now plan to increase investment by 8.5% in the current financial year, a little stronger than the 6.7% expected in the Q3 release.”

“For 2019-20 non-mining firms plan to increase investment another 6.6%. While these estimates are pretty rubbery at this early stage of the cycle, the positive tone suggests that businesses remain relatively upbeat about the outlook.”

“The mining sector also continues to be upbeat. While plans for 2019-20 were downgraded, mining firms expect to increase spending in 2019-20 by a strong 21%.”

“The RBA is likely to be relieved with the upgrade to investment plans.”