The headline has come in at -3% q/q (-13.8% y/y)

  • expected -1.5% q/q, prior -5.9%
  • Note that spending in Q3 was impacted by tax incentives to spend in Q2, which dragged spending forward. Nevertheless, the COVID-19 pandemic has seen business rein in capital spending and capital spending plans, many firms are focused on survival in the months to come and will deal with investment when they make it through. Capex in Q3 hit its lowest since Q1 of 2007.

Other key figures from the report:

  • Buildings and structures fell by -3.7% q/q (-15% y/y)
  • Equipment, plant and machinery fell by -2.2% (-12.3% y/y)
  • Estimate 4 for 2020-21 is $104,984m. This is 6.3% higher than Estimate 3 for 2020-21.

Plenty more to come