Capital investments slumps in Victoria

CapeEx rolls over

Private new capital expenditure missed expectations, falling by -2.2 per cent in the June quarter to $39.8 billion on a seasonally adjusted basis. 

Business investment in the non-mining investment fell by -3.6 per cent.

Source: ABS

The decline was mainly due to falling investment in buildings and structures, especially in Victoria, where investment fell -4.1 per cent over the June quarter.

Victoria has been going through a bit of a tough time of late, following a difficult pandemic period, and it looks suspiciously as though the suburban rail loop may be the next project being softened up for a cancellation.

Following on from the loss of momentum in the construction data yesterday, it looks pretty much as though GDP growth in the June quarter is likely to be flat. 

It's the first time in 4 years that investment in both building & structures and equipment & machinery fell simultaneously.

CapEx came out of the pandemic stimulus with a bullet, but now looks to be rolling over, underscoring the likely requirement for monetary easing in 2025.

James Foster ran through all the key data as ever here.

The number of temporary visa holders increased to 2.77 million in July, with the number of students up to 696,000.

Double-digit annual increases all around, and both figures will be at record highs by December.

The government has proposed caps on the number of student visas, but there are many exemptions to the cap. 

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