Surge in capex spending
Official figures show capital investment levels across Australia are up 0.8 percent on the three months to march.
Figures from the Australian Bureau of Statistics reveal businesses spent A$28.28 billion on buildings, equipment and machinery during the second quarter, raising hopes that the long-awaited switch from the mining sector to the rest of the economy is now finally underway.
While the levels are well below where they were just four years ago, the figures easily surpassed analysts’ expectations of a 0.2 percent quarterly lift.
The Australian dollar failed to rally on the news, fetching US78.94c shortly after the release of the data, down slightly on the day.
Subscribe