New capital expenditure falls 2.2% in June quarter
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The news: New capital expenditure fell 2.2% in the June quarter 2024, but on an annual basis was up slightly, according to the Australian Bureau of Statistics.
The numbers: Business investment dropped 3.6% for non-mining industries, offset partly by a rise in mining capex up 1.5%. Building and structure capex was down 3.8%, with non-mining industries down 7.7%. New equipment and machinery slumped 0.5%.
Compared to the previous quarter, retail and education saw the biggest falls.
The context: It was a mixed picture in terms of states and territories. While Victoria had the biggest fall, 4.1%, the Northern Territory had a significant rise of 23.5% because of higher mining capex.
There was a 0.4% drop quarter on quarter in NSW, a 3% decline in Queensland and a 14.5% drop in ACT. Tasmania and WA both lifted 0.9% and South Australia was up 2.3%. Over the year there have been big increases in Tasmania and the Northern Territory. Declines have continued in NSW and Victoria though.
The ABS is also looking at capital expenditure intentions for the year ahead. The manufacturing industry is expecting a big rise.
What they said: "Retail trade investment drove the fall in equipment and machinery capex, down 25.9 per cent. Both small and large retail businesses contributed to this fall, with some businesses telling us capex was down in response to economic conditions in the retail industry," said Australian Bureau of Statistics head of business statistics Robert Ewing.
The source: Australian Bureau of Statistics media release
