(28 November 2024 – Australia) Private new capital expenditure (capex) increased 1.1 percent in Q3 2024, representing a one percent lift year-on-year.
New equipment and machinery rose 1.1 per cent. Westpac reported that the outcomes further demonstrates that the industries at the forefront of the underlying structural changes impacting the economy continue to invest and build their capital stocks.
“As consumer demand picks up, we expect to see a more broad-based pick-up in capex – more likely than not this will be a story for 2026-27 and beyond. Private business capex growth was a touch firmer than Westpac’s forecast of 0.9%qtr and the median market forecast for a 1.0%qtr lift” stated Westpac Senior Economist Pat Bustamante.
“Business investment rose 2.3 percent in the non-mining industries. This was partly offset by a fall in mining capex of 1.9 percent” commented ABS Head of Business Statistics, Robert Ewing.
“The rise in buildings and structures was caused by higher spending on large scale upgrades in the manufacturing industry, and data centre projects in the information, media and telecommunications industry. This was partly offset by a fall in mining industry spending on buildings and structures, which was down 2.5 percent after rising last quarter,” Mr Ewing said.
“Non-mining investment drove up equipment and machinery capex by 1.4 percent. Finance and insurance, health care and social assistance, and manufacturing industries were the main contributors to the rise,” Mr Ewing said.