Capex Increases in Q3 as Outlook Weakens

The latest report on capital expenditure (capex) released by the ABS showed some interesting trends. In the third quarter of 2024, the total volume of capex increased by 1.1%. However, it was a tale of two sectors, with mining investment falling by 1.9% while non-mining investment rose by 2.3%. This data gives us a glimpse into where businesses are putting their money.

Looking ahead, the fourth estimate of nominal capex plans for 2024 came in at $A178.2 billion. This figure marks a downgrade compared to the previous estimate, indicating a shift in business intentions. While the pipeline of capex plans still looks robust, it’s worth noting that this marks the second consecutive downgrade in intentions for the 2024/2025 period. Businesses are adjusting their investment plans, with the current lift in nominal investment intentions sitting just under 3%.

Overall, the capex report paints a picture of a changing landscape in terms of business investment. It’s important to keep an eye on these trends as they can have implications for the wider economy. Stay tuned for more updates as we continue to track these developments.