Australia business investment bounces in Q4, outlook upgraded

[SYDNEY] Australian business investment bounced modestly last quarter as demand recovered from pandemic lockdowns and miners benefited from high resource prices, while future spending plans were again marked higher.

Figures from the Australian Bureau of Statistics on Thursday showed capital expenditure rose a real 1.1 per cent in the December quarter to A$33.3 billion (S$32.7 billion), missing market forecasts of a 2.6 per cent increase.

Spending plans for the year to end-June 2022 were upgraded to A$144.8 billion, at the higher end of analysts' estimates and a sign business confidence weathered the disruptions well.

The early estimate for 2022/23 came in at A$116.7 billion, when analysts had looked for something around A$120 billion. REUTERS