Australia's Capital Expenditure Survey for the January - March 2019 quarter is due on Thursday May 30 at 0130GMT.
Via CBA, in brief preview:
We expect the actual volume of capex spending to fall by 0.7% in Q1
- Such as an outcome would see the annual rate of growth dip down to 0.3%.
The 1st estimate of 2019/20 spending plans three months ago came in at $92.1bn. This was a strong number and the result implied a solid lift in mining capex and a smaller lift on the non-mining side.
- We consider a 2nd estimate that comes in larger than $98.5 as an upgrade to the 1st estimate and a good result. Less than $98.5bn would be a downgrade.
Via NAB, in brief:
NAB expects overall capex lifted 1% in Q1
- with a 1.3% lift in equipment investment, which is the component that feeds into GDP
Firms should revise up their investment plans for 2019-20, but the upgrade may be less than we expected given the turn in business conditions.
Via ANZ:
- We expect to see a small decline in private new capital expenditure in Q1 2019. Business conditions have not recovered since the deterioration in late-2018, while trade tension overseas sows doubt. Mining capex is nearing the end of its downturn and plans for 2019-20 are upbeat. We expect only a small improvement in non-mining capex plans from the December quarter estimate.
