Australia's Q4 business investment surprisingly jumps

[SYDNEY] Australian business investment rose by a larger-than-expected 3 per cent with spending in new buildings and equipment surprisingly picking up in a positive sign for the country's economy.

During the December quarter, investment rose 3 per cent to A$29.4 billion (S$30.93 billion), the first increase since end-2018 and the biggest since September 2013, figures from the Australian Bureau of Statistics (ABS) showed on Thursday.

Analysts in a Reuters poll had forecasts no change.

The unexpected increase was all due to non-mining activity, mostly construction, accommodation, food services and transport postal and warehousing led by demand for online shopping.

In a welcome sign, Australian firms seemed a little more confident about the future, with the latest estimate for spending plans for 2020/21 revised up to A$121.4 billion.

REUTERS