The Australian Bureau of Statistics (ABS) has released the fourth estimate for expected capex for 2014/15 for the September quarter and the result is a slight positive with expectations firming a little.
Estimate 4 for total capital expenditure for 2014-15 is $153,210m. This is 7.5% lower (-$12,492m) than Estimate 4 for 2013-14. The main contributor to this decrease was Mining (-$17,355m). Estimate 4 is 2.2% higher (+$3,262m) than Estimate 3 for 2014-15. The main contributor to this increase was Other Selected Industries (+$2,594m).
MINING
Estimate 4 for Mining for 2014-15 is $86,253m. This is 16.8% lower (-$17,355m) than Estimate 4 for 2013-14. Buildings and structures is 17.5% lower (-$16,204m) and equipment, plant and machinery is 10.6% lower (-$1,151m) than Estimate 4 for 2013-14. Estimate 4 is 0.4% higher (+$326m) than Estimate 3 for 2014-15.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
