Australia Q4 Equipment Spending Reverses After Q3 Jump

Private new capital expenditure on equipment, plant, and machinery in Australia fell 8.9% quarter-on-quarter in Q2 2026, reversing an upwardly revised 18.4% surge in the previous period, which marked the strongest growth since Q4 1992. The decline was largely driven by lower non-mining investment, which dropped 5.3% after rising 9.2% in Q1, while spending on mining-related equipment increased 1.6% following a 0.6% gain. By industry, investment contracted sharply in information media and telecommunications (-30.2%), professional, scientific and technical services (-12.0%), and arts and recreation services (-11.8%). On an annual basis, spending on equipment, plant, and machinery rose 18.7%, easing from an upwardly revised 30.8% growth rate in the previous quarter.

Private new capital expenditure on equipment, plant, and machinery in Australia climbed by 18.1% qoq in the first quarter of 2026, rebounding sharply from a downwardly revised 1.3% fall in the previous quarter. This also marked the strongest growth since March 1996, largely driven by non-mining business investments, which recorded an 8.8% increase (vs 1.3% in Q4 2025), while mining-related equipment spending (0% vs -0.9%) was relatively unchanged. Information media and telecommunications recorded the largest industry rise, up 96.1%, reaching a new record level. “The lift in investment was the result of investment in data centre equipment, specifically server racks and processing equipment, significantly boosting overall investment figures”, said Tom Lay, Head of Business Statistics at the ABS. On an annual basis, investment in equipment, plant, and machinery surged by 31%, the sharpest since December 1994 and accelerating from an upwardly revised 9.8% rise in the prior period.

Private new capital expenditure on equipment, plant, and machinery in Australia fell 1.7% qoq in Q4 2025, swinging from a marginally revised 11.2% surge in Q3 and marking the first contraction in three quarters. The pullback suggests some normalization after the previous quarter’s strong spike in investment amid record-high investment in data centers. By industry, mining-related equipment spending declined 0.8%. On the other hand, non-mining outlays continued to expand, rising 3.8% and cushioning the overall drop. On an annual basis, investment in equipment, plant, and machinery increased 9.4%, easing slightly from a 9.9% gain in Q3 but still reflecting solid underlying capital spending momentum.