Actual capex plummets in Q2

The Australian Bureau of Statistics (ABS) today released data on capital expenditures (capex) for the June quarter, which registered a 5.9% seasonally adjusted fall in capex volumes over the quarter and an 11.5% decrease over the year (see below table).

The first chart below shows actual capex by industry in dollar terms (rather than volume terms as shown above), which fell by 5.5% over the quarter. The fall was led by “Other” capex (-8.1%), whereas mining capex (+0.7%) and manufacturing capex (+4.1%) also fell:

“Other” (services) capex (59% share) remains the leader, followed by mining capex (32% share), with manufacturing capex at a still dismal 9% in the June quarter:

Finally, the fall in capex was driven by NSW, VIC and QLD, which fell by 8.6%, 5.8% and 8.9% respectively over the quarter:

The June quarter national accounts are obviously going to be a shit show.

Unconventional Economist
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