Australia private capital expenditure dropped -2.8% in Q4, much worse than expectation of 0.5% increase. In seasonally adjust terms, building and structures dropped -5.9%. Mining dropped -2.7%. Equipment, plant and machinery rose 0.8% Manufacturing dropped -10.1%. Other selected industries fell -1.9%
The set of data is rather disappointing as weak economic outlook appeared to have dampen investments again. Both monetary and fiscal stimulus are need for the economy. Q2 will be important for Australia as markets are expecting an RBA rate cut and increased government spending in May’s budget.
