Actual capex tanked in Q4

The Australian Bureau of Statistics (ABS) today released data on capital expenditures (capex) for the December quarter, which registered a 2.8% seasonally adjusted fall in capex volumes over the quarter and a 5.8% decrease over the year (see below table).

The 2.8% quarterly decline badly missed market expectations of a 0.5%. rise

The first chart below shows actual capex by industry in dollar terms (rather than volume terms as shown above), which fell by 2.4% over the quarter. Mining capex (-2.1%), manufacturing capex (-9.3%) and “Other” capex (-1.5%) all declined:

“Other” (services) capex (63% share) remains the leader, followed by mining capex (29% share), with manufacturing capex at a still dismal 8% in the December quarter:

Finally, all mainland states registered capex falls in the December quarter:

Next week’s December quarter GDP report is shaping up as an absolute shocker.

Leith van Onselen
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