Aus Q1 capex well below expectations, future investment prospects brighter

FXStreet (Bali) - Australia's private capital expenditure (capex) came at -4% vs -1.4% expected and -5.2% last, with the 2nd estimate of 2014/15 capex coming at $A137.1bn vs A$127.8 bn expected.

Official release

ACTUAL EXPENDITURE (VOLUME TERMS): The trend volume estimate for total new capital expenditure decreased by 0.3% in the March quarter 2014 while the seasonally adjusted estimate decreased 4.2%.The trend volume estimate for buildings and structures increased by 1.0% in the March quarter 2014 while the seasonally adjusted estimate decreased by 7.4%. The trend volume estimate for equipment, plant and machinery decreased by 3.3% in the March quarter 2014 while the seasonally adjusted estimate increased by 2.8%.

EXPECTED EXPENDITURE (CURRENT PRICE TERMS): This issue includes the sixth estimate (Estimate 6) for 2013-14 and the second estimate (Estimate 2) for 2014-15. Estimate 6 for 2013-14 is $162,849m. This is unchanged from Estimate 6 for 2012-13. Estimate 6 is 2.5% lower than Estimate 5 for 2013-14. Estimate 2 for 2014-15 is $137,063m. This is 12.0% lower than Estimate 2 for 2013-14.

Australia Private Capital Expenditure registered at -4.2%, below expectations (-1.4%) in 1Q

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