Private New Capital Expenditure Rises in Australia, Led by Non-Mining Industries

Australia, Police

Article: Private new capital expenditure in Australia has shown positive growth, according to the latest figures released by the Australian Bureau of Statistics (ABS).

The data reveals that capital expenditure rose by 1.

March quarter of 2024, resulting in a 5.

The ABS head of business statistics, Robert Ewing, highlighted that the growth in business investment was driven by non-mining industries, which saw a significant rise of 3.

March quarter.

This increase was partially offset by a 4.

The transport, postal, and warehousing industry experienced the largest rise among all sectors, with a notable increase of 15.

This growth was attributed to increased investment in vehicles and ongoing infrastructure projects.

Furthermore, the report indicates that new equipment and machinery capex rose by 3.

However, the mining sector experienced a decline of 3.

The information media and telecommunications industry stood out with a remarkable 60.

This surge was largely due to expanded investment in data centres.

On the other hand, new building and structures capex fell by 0.

The mining sector was a key contributor to this decline, with a significant drop of 5.

LNG projects during the quarter.

Among the states and territories, Queensland recorded the highest rise in capital expenditure, with a 5.

March quarter.

Conversely, Western Australia experienced the biggest fall, down by 6.

The release also includes updated expectations of planned capex for the financial year.

Businesses have revised their expected capex spend for 2023-24, increasing it by 2.

Additionally, the second estimate for planned capex for 2024-25 rose by 6.

The ABS head of business statistics emphasized that the rise in planned capital investment indicates businesses’ optimism for continued growth in new capital expenditure for the remainder of this financial year and the year ahead.

Particularly, the information media and telecommunications industry is expected to see a significant rise in capex due to planned investments in new data centres.

The electricity, gas, water, and waste services industry also anticipates a substantial increase from planned investments in renewable energy infrastructure.

For more detailed industry and state analysis, as well as additional information on the statistical methodology, refer to the ABS’ report titled “New Capital Expenditure” (cat no.

The ABS expresses its gratitude to the businesses across Australia for providing the data used in this release.