This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Capital expenditure fell by 0.6% in the June quarter 2018, while the seasonally adjusted estimate fell by 2.5% . The Australian dollar fell from 0.73 to 0.72 upon the news.
The Australian Bureau of Statistics (ABS) released the data on Thursday which shows:
The trend volume estimate for buildings and structures fell by 2.1% in the June quarter 2018 while the seasonally adjusted estimate fell by 3.9%.
The trend volume estimate for equipment, plant and machinery rose by 1.3% in the June quarter 2018 while the seasonally adjusted estimate fell by 0.9%.
The trend estimates for total dwellings approved fell 1.3% in July. The seasonally adjusted estimate for total dwellings approved fell 5.2% in July.
However, figures for spending expectations for 2018/2019 financial year have been upgraded from the first quater estimate, going up from $88 billion to $102 billion.