Business investment beats expectations as the economy moves away from mining dependency
The long anticipated economic transition away from the resources sector appears to be gaining momentum with stronger-than-expected investment in the June quarter.
Private sector capital expenditure (capex) rose by 0.8 per cent over the quarter, seasonally adjusted, eclipsing market forecasts for a 0.2 per cent rise.
Importantly, the forward-looking expected expenditure survey found businesses were far more bullish about its spending plans.
The third estimate of spending for the 2017-2018 financial year came in at $101.7 billion, almost 18 per cent higher than the second estimate three months ago.
However, expectations are still 3.6 per cent lower at the same time last year, while total capex is 3 per cent lower compared to the June quarter in 2016.
More to come.