Australian Q2 Private Capital Expenditure -4.0% (a miss)
- expected is -2.5%
- prior was -4.7%, revised from -4.4%
The 4% number equates to an annual fall of 10%
For the Equipment, plant and machinery -1.2%
- vs. -1% expected
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(I did a preview here, for background)
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3rd estimate at $A114.8bn
- expectations were around $A111bn
- the prior, estimate 2, was at $A104bn ... so today's result on this is an improvement
Quick take
- Headline is awful
- 3rd estimate is a beat, which softens the blow somewhat
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More ... via Australian Bureau of Statistics
ACTUAL EXPENDITURE (VOLUME TERMS)
- The trend volume estimate for total new capital expenditure fell 3.9% in the June quarter 2015 while the seasonally adjusted estimate fell 4.0%.
- The trend volume estimate for buildings and structures fell 5.3% in the June quarter 2015 while the seasonally adjusted estimate fell 5.6%.
- The trend volume estimate for equipment, plant and machinery fell 0.8% in the June quarter 2015 while the seasonally adjusted estimate fell 1.2%.
EXPECTED EXPENDITURE (CURRENT PRICE TERMS)
- This issue includes the seventh estimate (Estimate 7) for 2014-15 and the third estimate (Estimate 3) for 2015-16.
- Estimate 7 for 2014-15 is $150,579m. This is 4.7% lower than Estimate 7 for 2013-14. Estimate 7 is 0.5% higher than Estimate 6 for 2014-15.
- Estimate 3 for 2015-16 is $114,814m. This is 23.4% lower than Estimate 3 for 2014-15. Estimate 3 is 9.9% higher than Estimate 2 for 2015-16.
The final set of columns (over on the right of the graph, for 2015-16) shows how far planned expenditure has fallen. This is NOT surprising (as I pointed out in the earlier preview); in fact what is (mildly) surprising is the improvement in plans for Estimate #3 compared to the previous (Estimate 2). Like I said ... not a huge improvement,,, but we'll take what we can get.
