Overview
- The Australian Bureau of Statistics data released 28 May showed private new capital expenditure rose 6.5% quarter‑on‑quarter in the March quarter, well above forecasts.
- The gain was concentrated in plant and machinery, which rose 18.1%, driven by a near‑record $6 billion spend on data‑centre servers and processing equipment.
- The ABS warned much of the equipment spending was import‑intensive, meaning higher capital‑goods imports will likely reduce the net contribution to upcoming GDP figures.
- April household spending fell 1.1% month‑on‑month, with discretionary purchases down 0.8% in their biggest monthly drop since February 2024, signalling early consumer strain.
- The mix of import‑heavy investment and weakening consumer demand complicates the near‑term outlook for growth and will be a key input for the Reserve Bank when assessing future interest‑rate decisions.