The data and initial analysis is here: Australia – private capital expenditure for Q4: -5.2% (expected -1.3%, prior was +3.6%)

From Citi:

  • Lowers Australia GDP forecast after capex report
  • Q4 GDP estimate now at 0.4% from 0.6%

Headlines on the wires

(referrring to report from Citi economists:

  • Saying capex expectations for 2014/15 year are very weak
  • Mining and manufacturing capes likely to fall hard next year
  • Rise in service industries unlikely to offset the falls
  • RBA likely still neural for the time being)

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More reactions:

Paul Bloxham, economist at HSBC:

  • still very few signs that growth is rebalancing
  • These investment intentions data suggest that capital expenditure will be a significant drag on the economy next financial year

TD Securities analyst Annette Beacher

  • Data shows only “glacial improvement” in the non-mining sector
  • Cuts fourth-quarter GDP estimate to 1% from 1.2 (quarter on quarter)
  • There is only a weak improvement in services investment, while investment in the mining and manufacturing sectors could plummet