Australia's Q1 business investment fails to meet expectations with 4.4% fall

Sydney

AUSTRALIAN businesses investment suffered the largest fall in over six years last quarter while spending plans for the year ahead came in far below expectations, a deeply disappointing report that sent the local dollar reeling.

The news will be a bitter pill for the Reserve Bank of Australia (RBA) which only just cut interest rates to a record low of 2 per cent in the hope of reviving business spending.

Thursday's data from the Australian Bureau of Statistics reported investment fell 4.4 per cent to A$35.9 billion (S$37.5 billion) in the first quarter. That …