The Private New Fixed Capital Expenditure data were released today. As the diagram above shows, the results are pretty dismal. The seasonally adjusted figures are especially poor. Total New Fixed Capital Expenditure fell by 4.0% in the quarter and by 4.8% across the year.
Maybe next year will be better. Looking forward, the ABS reports that “Estimate 3 for 2010-11 is $123,334m. This is 24.3% higher than Estimate 3 for 2009-10. Estimate 3 is 17.5% higher than Estimate 2 for 2010-11.”
The strength in the data looking forward are found in the mining industry which is pulling the statistic upwards. Whether boardroom decisions continue to reflect the optimism shown by the statistical clerk responsible for forwarding these figures to the ABS is still an unknown.
Meantime, however, the data for what we know are seriously bad.
Stece
It would be interesting to splice out mining. Taking that out it would most probably appear horrendous.
The interesting question is where did the former government think the productivity miracle would magically appear from, as they were talking up a productivity storm there for a while.
Shane Wand was getting really excited talking about productivity pretending he even knew how to spell it.
JC
26 Aug 10 at 11:31 pm
Particularly when the ABS counts all of Gorgon upfront.
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27 Aug 10 at 7:44 am