The ‘headline’ figure +0.2% q/q
- Expected -1.9%
- Prior was +1.6% (revised from+1.1%) in Q2
The more important “equipment, plant and machinery” component is +4.4% q/q
- Expected -1.0%
- Q2 reading was -0.9%
Other key data point from this report is the capital spending expectations for financial year 2014/15. This is Estimate 4 for 2014/15: $153.2 bn
- The 3rd estimate for 2014/15 was at $145bn (from the prior estimate at $137bn)
Preview of this data is here, with more and background etc.
Much better data than expectations, but still not anywhere near boom levels.
It will give some encouragement to the RBA, and confirms monetary policy in Australia is on hold for quite some time to come still.
AUD/USD up to a fresh session high on the release and currently sitting just below there. The better than expected data will be a positive for the AUD for today, but there are plenty of sellers lurking above here (earlier orderboard is here).
–
Added:
Note – Investment plans for services are up 11% y/y. Services tend to be big employers … more encouraging news.
