The ABS quarterly capex report was out today and disappointed on current spend as well as expected spend outside of mining. First, the details from the quarter past:
Trend estimates(a) Total new capital expenditure 38 737 5.9 32.3 Buildings and structures 22 692 8.1 47.4 Equipment, plant and machinery 15 916 2.1 14.7 Seasonally adjusted(a) Total new capital expenditure 37 915 -0.3 30.0 Buildings and structures 22 243 0.9 47.6 Equipment, plant and machinery 15 672 -2.1 11.1
The important figure is the 0.3% fall, versus market expectations of a 4% rise.
The total estimated capex for the first quarter of 2012/13 showed a very healthy rise to $173 billion (remember the clear bars are the expected capex for the year in any given quarter, the shaded areas are the actual):
But the composition was very much more of the two speed economy. Mining continues to power with its first estimate for 2012/13 of Goliath proportions:
But manufacturing and other industries (basically everything else) is going backwards:
Grab a hard hat, you’re going to need one.
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.
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