Some good news amid Australia's capex decline

Despite the collapse in mining investment driving a fall in new capital expenditures, an expected increase in investment in the services sector is an encouraging sign for the economy.

Mining and manufacturing investment is set to fall sharply in the 2014-15 financial year but the outlook for the economy appears to have improved. Though there remains considerable uncertainty and significant risks in the form of iron ore and China, it appears likely that the non-mining sector will provide enough support to keep the Australian economy growing at a solid (if unspectacular) pace over the next couple of years.

New capital expenditure fell by 4.2 per cent in the March quarter, weaker than market expectations of a more modest decline, to be 5 per cent lower over the year. This followed a similarly weak result in the December quarter.

Graph for Some good news amid Australia's capex decline



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles