The Australian capex figure for the June quarter is out, and it’s a big beat on market expectations.
Seasonally adjusted, total investment rose by 4% in the quarter against a market expectation of just 0.8%.
The big rise was in building investment, with $25.8 billion spent over the quarter. Spending on plant and machinery was down 1.2% at $14.2 billion.
Estimate 3 for expenditure in 2013-14 is $159 billion, up from $156 billion in the previous estimate, so it’s a reasonably bullish result and outlook for the coming year.
The dollar jumped slightly on the news, but FX Street quotes NAB analysts saying the revised investment number “represents a downward revision relative to what we would have expected based on typical differences this (3rd) estimate and previous (2nd) estimate.”