The ABS has released September quarter capex intentions and the news is more weakness.
Estimate 4 for total capital expenditure for 2016-17 is $106,926m. This is 14.3% lower than Estimate 4 for 2015-16. The main contributor to the decrease is Mining (-33.6%). Estimate 4 is 1.3% higher than Estimate 3 for 2016-17. The main contributor to the increase was Other Selected Industries (4.7%).
That is on the weaker side of hopes. Note that the fourth estimate tends to be in line with end result so we’re looking at -14.3% year on year. The Budget of Lies is forecasting -5%!
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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.
