Supply chain delays easing as Aussie capex lifts 2.8%

The news: Australian private new capital expenditure rose 2.8% in the June quarter and was 10% higher than a year ago, but the figure has more to do with project and delivery delays than economic strength, according to the ABS.

The numbers: The construction industry recorded the highest lift in total capex, rebounding 30.5% after two negative quarters. Nationally the increase was led by businesses buying new equipment and machinery (+1.9%) and investing in buildings and structures (+3.5%).

The context: The increase in buildings and structures investment was boosted by mining projects and the commencement of some delayed projects in non-mining industries, ABS head of new capex statistics Robert Ewing said. The rebound in the construction industry data was led by small businesses receiving machinery and vehicles after delivery delays.

What they said: "Increased investment in equipment and machinery reflects a further easing of supply-chain disruptions, with the availability of vehicles improving significantly during the quarter," ABS's Robert Ewing said.