Australia total new capital expenditure dropped -5.9% qoq in Q2 to AUD 26.13B, better than expectation of -8.2% qoq. But it’s still down -11.5% yoy comparing to Q2 2019. Building and structures expenditures dropped -4.4% to AUD 14.01B. Equipment, plant and machinery expenditure dropped -7.6% qoq to AUD 12.1B.
Overall investments fell less than expected, inline with RBA’s view that the downturn was not as severe as originally anticipated. Q2 GDP contraction would likely be not as deep as thought too.
