Private capital expenditure data post is here: Australian Private Capital Expenditure (capex) for Q2 headline -5.9% (expected -8.2%)
Comments (in brief) via Westpac:
- Capex plans have been scaled back further in response to the covid recession.
- services confirmed a very weak outlook.
- This latest update on capex plans point to a sharp contraction in business investment in 2020/21
- Many firms are in survival mode and are looking to cut non-essential spending, including some investment expenditure.
- Investment is being both delayed and cancelled
- This is in response to weak demand, excess capacity, lower prices and heightened uncertainty.
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Less investment creates a vicious circle, lower growth ahead, less profits, less $ for investment ....
