Australian Private capital expenditure (capex) data (Q4 2018): Headline 2.0% (vs. 1% expected)

Capital spending data from Australia for the fourth quarter of last year.

The headline is an encouraging +2.0% q/q, beating central estimate of +1.0%

• prior -0.5%

The 'second headline' for this report is the 5th estimate of capex plans for 2018/19, comes in at 118.4bn AUD

• prior 114bn
• while higher its not as strong as previous experience would suggest it might have been, but still its a positive

Q4 plant and machinery capex is +0.7% q/q

• Q4 building capex is +3.2% q/q

In today's release is the 1st estimate for capex in 2019/20. This early estimate is, well, too early to be of much notice to the market. FWIW: +92.1bn AUD and up on the first estimate for the previous year.

more to come

AUD up after the release, not large as I update.

Background:

• Australian GDP input data due today - capital expenditure - preview

I should also link as background to yesterday's data, also a partial for the Q4 GDP (due March 6), which was terrible:

• Australia data - construction work done -3.1% q/q (vs. expected +0.5%)

Today's capex number at 2% instead of the 1% increase expected should partially 9sry) offset the construction figure.

For more on yesterday's data:

• Terrible Australian construction data - stunned responses continue to flow in
• Another response to weak Australian construction data: downside risk to Q4 GDP
• Response to weak Australian construction data coming in - RBA to cut twice in 2019
• AUD response to the dreadful construction centre data ... subdued