Key facts
- Australian private capital spending fell 3.6% in the June quarter to A$50.95 billion.
- The decline was attributed to a 53% drop in spending on information media and telecommunications equipment.
- Spending on plant and machinery decreased by 8.9%, while spending on buildings and structures rose 2.1%.
- Firms plan to spend A$200.7 billion in the year to June 2027, an increase of 15.5% from the previous estimate.
Australian business investment saw a notable decline in the June quarter, with private capital spending falling 3.6% to A$50.95 billion, a figure that fell short of market forecasts. This contraction was largely driven by a significant 53% decrease in spending on information media and telecommunications equipment, a sector that had previously seen record investments in data centre construction. Spending on plant and machinery also slid by 8.9%, though investment in buildings and structures saw a modest increase of 2.1%. Despite the quarterly dip, a survey of firms indicates a more optimistic outlook for the coming years, with planned capital expenditure for the year to June 2027 projected to reach A$200.7 billion, a 15.5% increase from the prior estimate.