Australia Private Capex Unexpectedly Falls in Q1

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.

Total new capital expenditure in Australia rose by 0.2% quarter-on-quarter in Q2 2025, falling short of market expectations for a 0.7% expansion. This followed an upwardly revised 0.2% decline in the previous quarter. The increase was driven by a 0.3% gain in spending on equipment, plant, and machinery, along with a 0.2% rise in investment in buildings and structures. Investment grew in non-mining industries (0.9%) while the mining sector fell (-1.4%). Geographically, Victoria recorded the fastest increase (7.0%), followed by New South Wales(2.4%), Northern Territory (0.6%), and Tasmania (0.2%). In contrast, the Australian Capital Territory (-6.8%), Queensland (-4.8%), South Australia (-3.5%), and Western Australia (-0.1%) posted declines. On an annual basis, private capital expenditure climbed by 1.7% through the year to June, following an upwardly revised 0.6% contraction in Q1.

Total new capital expenditure in Australia unexpectedly contracted by 0.1% quarter-on-quarter in the first quarter of 2025, missing market expectations of a 0.5% expansion and following a revised 0.2% increase in the previous quarter. The decline was driven by a 1.3% drop in spending on equipment, plant, and machinery, partially offset by a 0.9% rise in investment in buildings and structures. Investment fell in non-mining industries (-0.9%) but rose in the mining sector (1.9%). Geographically, the Northern Territory recorded the steepest decline (-13.2%), followed by Tasmania (-6.6%), Victoria (-5.3%), Queensland (-0.9%), and New South Wales (-0.1%). In contrast, South Australia (11.1%), the Australian Capital Territory (10.9%), and Western Australia (2.1%) posted significant gains. On an annual basis, private capital expenditure declined by 0.5% through the year to March, following an upwardly revised 1.0% increase in the fourth quarter.