“The non-resources sector is finally showing signs of increasing its investment in the nation’s future.”
The Australian Bureau of Statistics’ private fixed capital survey asks the nation’s chief financial officers how much they intend to spend on capital expenditure over the financial year.
The CFOs told the ABS they intend to invest $55 billion in capital expenditure this financial year. That’s 4.2 per cent more than they were saying 12 months ago. It’s not a lot more but it is more than this time last year.
Even the manufacturing sector is showing signs of life. The June quarter has manufacturing CFOs saying they’ll invest $8.5 billion this year which 6.8 per cent more than in last year. You have to go back to 2012-13 to find a markedly stronger third estimate.
This is the type of expenditure forecasts the RBA has been sweating as it chopped away at interest rates. Hopefully there’s some light at the end of the business investment tunnel.
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