Australia’s capex rose only slightly in Q2 - ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) offer a brief preview of what to expect from the Australian second-quarter private capital expenditure data due out shortly.

Key Quotes:

“We believe capital expenditure rose only slightly in Q2, although machinery and equipment spending (which flows directly into GDP) is expected to post solid growth, in line with strength in business conditions and capital goods imports. 

But the overall spending number will be weighed down by the ongoing decline in mining investment, implied in this week's construction data. We anticipate a solid upgrade to firms' spending plans for 2018-19, consistent with rising capacity utilization. We will release a detailed capex preview on Monday.”