The headline for the Australian Q3 Private Capital Expenditure came in at -4% against expectations for -3%
And behind the headlines, it didn't get much better (post is here for more)
Some responses coming in (and I'll get some more)
via Reuters:
- miners and manufacturers cut back on spending
- disappointing report
- underlining real risk that the whole economy may have contracted
- With spending on equipment and building declining, investment likely took another heavy toll on gross domestic product (GDP) which was already looking soft
- The data was also a blow to the RBA hopes for a revival in investment outside of the hard-hit mining sector
- Neither was the outlook much brighter with the latest survey estimate of planned investment for 2016/17 coming in well under expectations at $106.9 billion. Analysts had looked for something around A$111 billion
via the Financial Times (FastFT):
- likely to take some of the shine off the upcoming GDP figure
- Among industries, spending in mining continued to fall, down 7.2 per cent in seasonally-adjusted terms, manufacturing was down 4.9 per cent, while other selected industries saw a 1.9 per cent decline for the quarter.
- The ABS's fourth estimate for spending in 2016-17 has come in at A$106.93bn, falling short of economists' expectations for A$110bn
- Capex is a key component of GDP growth and one of the last main pieces of data before next week's 3Q GDP release
-
ps. Australian Q3 GDP is due for release on December 7