On Friday, the ABS has released the annual national accounts to June 2019, which reported that overall capital expenditure (“Gross fixed capital formation”) decreased 1.4% in 2018-19, and collapsed to 23.3% of GDP from 24.3% the year prior:
Mining investment continued to fall to 2.6% of GDP from 3.0% the year prior and a peak of 8.9% in 2012-13:
Non-mining investment (i.e. services, construction, manufacturing, etc) also decreased by 0.2% in real terms in 2018-19:
The next charts plot non-mining against mining investment, which shows the situation more clearly:
In 2018-19, non-mining investment fell by $884 million versus a $5.6 billion decline in mining investment.
Finally, a separate mention needs to go to the manufacturing sector, which has of course been hit hard by the closure of the car industry. Real manufacturing investment also fell by 1.3% in 2018-19, with its share of Australia’s GDP hitting a record low 0.86%:
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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