Australia Capital Spending Drops in Q2

2026-08-27 01:48 By Judith Sib-at 1 min. read

Total new capital expenditure in Australia fell 3.6% quarter-on-quarter in the second quarter of 2026, reversing an upwardly revised 6.9% increase in the previous quarter and against expectations for no change.

That was due to a sharp pullback in expenditure on equipment, plant and machinery, which declined 8.9% after an 18.4% jump in the prior quarter, particularly the 53% plunge in spending on information media and telecommunications equipment following record data-centre investment that drove a 199.6% surge last quarter.

In contrast, expenditure on buildings and structures rose 2.1%, rebounding from a 3.3% drop.

Regionally, capital spending declined in New South Wales (-2.8%), Victoria (-13.9%), Queensland (-0.4%), and South Australia (-1.9%), while it increased in Western Australia (4.0%), Tasmania (9.3%), the Northern Territory (6.8%), and the Australian Capital Territory (3.2%).

Yearly, private capex grew 10.7%, slowing from an upwardly revised 14.9% rise in the previous period.



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Australia Capital Spending Drops in Q2
Total new capital expenditure in Australia fell 3.6% quarter-on-quarter in the second quarter of 2026, reversing an upwardly revised 6.9% increase in the previous quarter and against expectations for no change. That was due to a sharp pullback in expenditure on equipment, plant and machinery, which declined 8.9% after an 18.4% jump in the prior quarter, particularly the 53% plunge in spending on information media and telecommunications equipment following record data-centre investment that drove a 199.6% surge last quarter. In contrast, expenditure on buildings and structures rose 2.1%, rebounding from a 3.3% drop. Regionally, capital spending declined in New South Wales (-2.8%), Victoria (-13.9%), Queensland (-0.4%), and South Australia (-1.9%), while it increased in Western Australia (4.0%), Tasmania (9.3%), the Northern Territory (6.8%), and the Australian Capital Territory (3.2%). Yearly, private capex grew 10.7%, slowing from an upwardly revised 14.9% rise in the previous period.
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