Australia Private Capex Growth Beats Forecasts

Total new capital expenditure in Australia jumped 6.5% quarter-on-quarter in the first quarter of 2026, accelerating from an upwardly revised 0.7% rise in the previous quarter and far exceeding market expectations for a 1.0% gain. Investment in equipment, plant, and machinery rebounded sharply (18.1% vs -1.3% in Q4), led by a sharp increase in information, media, and telecommunications. Meanwhile, spending on buildings and infrastructure declined (-3.8% vs 2.5%), mainly attributed to lower investment in mining, utilities, and rental services. Regionally, capital spending rose strongly in New South Wales (22.1%) and Victoria (12.7%), while South Australia posted a modest gain of 0.2%. In contrast, investment in the Northern Territory plunged 39.8%, with declines also recorded in Queensland (-3.0%), Western Australia (-4.3%), Tasmania (-8.0%), and the Australian Capital Territory (-9.4%). Yearly, private capex surged 14.6%, after an upwardly revised 8.1% growth in the previous period.

Total new capital expenditure in Australia rose 0.4% qoq in Q4 2025, slowing sharply from a 6.4% growth in Q3 but beating market expectations for flat growth. Investment in buildings and infrastructure continued to expand (2.3% vs 2.3% in Q3), helped by large-scale projects in utilities, rental, hiring & real estate, and information and telecommunications. Within this category, non-mining capex increased 3.7%, while mining-related investment edged down 0.2%. By contrast, spending on equipment, plant, and machinery fell 1.7%, reversing an 11.2% surge previously. Non-mining equipment investment grew 0.8%, but mining equipment spending fell 0.8%. Regionally, capital spending rose in Victoria (2.0%), Queensland (0.7%), South Australia (4.8%), Western Australia (3.9%), and the Northern Territory (1.9%). Investment was flat in Tasmania, but it plunged in the Australian Capital Territory (-143%). On an annual basis, private capex rose 7.8%, faster than 6.9% in Q3.

Total new capital expenditure in Australia grew by 6.4% qoq in Q3 2025, surpassing market expectations of a 0.5% expansion. This followed an upwardly revised 0.4% growth in the previous quarter, marking the largest increase since the March quarter of 2021. The increase was driven by an 11.5% surge in spending on equipment, plant, and machinery, along with a 2.1% rise in investment in buildings and structures. “The lift in investment was the result of a large rise in spending on data centres and investment in air transport,” said Tom Lay, ABS head of business statistics. By sector, non-mining industries rose 8.6%, while the mining industry grew 0.9%. Geographically, the Australian Capital Territory recorded the fastest increase at 35.3%, followed by South Australia (8.2%), Queensland (7.3%), Victoria (6.7%), and Tasmania (2.8%). In contrast, the Northern Territory posted a decline of 1.6%. On an annual basis, private capital expenditure advanced by 6.9% through the year to September.