Australian businesses appear to be suffering from an ‘economic hangover’ with new figures revealing business investment fell in the September quarter.
The latest Australian Bureau of Statistics figures reveal new private capital expenditure (capex) dropped by a seasonally adjusted 3.9 percent in the three months to September.
However, all hope is not lost, with a sharp upgrade to future investment plans suggesting brighter times are ahead. The fourth estimate of expenditure for 2009/10 hit $105 billion, 5.9 percent higher than the previous estimate.
According to Helen Kevans, an economist at JPMorgan, this is the number they focus on.
“The number we focus on is the forward looking component and spending plans were heavily upgraded for the fiscal year, which is very positive for the outlook,” she said.
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