Australia's Q3 capex worse-than-expected, no much change on estimates for 2016/17

Australian capex (private capital expenditure) for Q3 showed a reading of -4% q/q vs -2.5% expected and -5.4% last. The estimate for 2016/17 capex was AUD106.9bn vs expected of around AUD111bn vs AUD105bn last. In terms of Q3 building capex -5.7% q/q, while plant machinery capex was down -1.9% q/q. 

Key Points - Sept

ACTUAL EXPENDITURE (VOLUME TERMS)

The trend volume estimate for total new capital expenditure fell by 4.9% in the September quarter 2016 while the seasonally adjusted estimate fell by 4.0%.
The trend volume estimate for buildings and structures fell by 8.5% in the September quarter 2016 while the seasonally adjusted estimate fell by 5.7%.
The trend volume estimate for equipment, plant and machinery rose by 1.0% in the September quarter 2016 while the seasonally adjusted estimate fell by 1.9%.

EXPECTED EXPENDITURE (CURRENT PRICE TERMS)

This issue includes the fourth estimate (Estimate 4) for 2016-17.
Estimate 4 for 2016-17 is $106,926m. This is 14.3% lower than Estimate 4 for 2015-16. Estimate 4 is 1.3% higher than Estimate 3 for 2016-17.
See pages 7-10 for further commentary on expectations data.