Mixed Capex Results - ABS
(24 February 2022 – Australia) While forecast capital expenditure (Capex) advanced 1.1 percent in Q4 2021 compared to Q3 2021 according to the latest Australian Bureau of Statistics (ABS) data, equipment, plant and machinery investment fell slightly to likely drag on gross domestic product (GDP).
The one percent increase fell short of forecasts for a 2.5 percent expansion in the face of pandemic enforced shut downs and supply chain disruptions. Companies plan to invest A$116.7 billion in the 12 months to June 2023, in line with forecasts.
“That’s a strong first result for investment intentions in 2022-23, suggesting that firms are responding to strong growth with projected increases in capacity, and investment plans haven’t been too hurt by uncertainty about future conditions” commented Australian Institute of Company Directors (AICD) Chief Economist, Mark Thirlwell MAICD.
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