Capex expectations crater

Thursday 26 February 2015

The ABS has released its much anticipated quarterly capex update and the news is ‘look out below’. For the 5th estimate of the current financial year, expectations held up within expectations at $153 billion:

Estimate 5 for total capital expenditure in 2014-15 is $152,656m. This is 8.6% lower than Estimate 5 for 2013-14. The main contributor to this decrease was Mining (-19.6%). Estimate 5 is 0.4% higher than Estimate 4 for 2014-15. The main contributor to this increase is Other Selected Industries (5.9%).

However, expectations for the 2015/16 came in a cool $10 billion below consensus at $110 billion:

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About the author

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.