The Strategist

Corporate capital investment in Australia jumps in Q1

06/01/2023 - 11:12

Australian corporations' investments increased significantly in the first quarter of this year, led by growth in capital expenditures in the mining, manufacturing, and transportation industries. Companies maintained their optimism on investments over the upcoming 12 months.

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The Australian Bureau of Statistics said on Thursday that real capital investment by businesses increased by 2.4 percent in Q1 compared to Q4 after adding 2.2 percent in the October-December quarter.

The largest quarterly gain in the last two years was seen in spending on new machinery and equipment, which increased by 3.7%.

Companies also increased their capital budgets, which now total A$137.6 billion for the fiscal year that ends in June 2024, a rise of 6.4% from the previous quarter.