Despite the economic downturn hitting the global financial markets, businesses have increased many of their investment plans. Data shows that business
Despite the economic downturn hitting the global financial markets, businesses have increased many of their investment plans.
Data shows that business has increased capital expenditure plans to $102.7 billion for 2008-09, up 1.6 percent from an estimate made three months ago.
This fourth estimate of capital expenditure (capex) plans for 2008-09 is 21.9 percent higher than a comparable forecast made last year for 2007-08.
The forecast was contained in the Australian Bureau of Statistics’ new private capital expenditure report for the September quarter that has just been released.
It shows businesses spent $23 billion in the September quarter, a seasonally adjusted 0.6 percent rise on the previous quarter.
This is slightly higher than the 0.5 per cent increase forecast by economists.
Business investment has been a major plank of support for the economy as companies used proceeds from the resources boom to upgrade their facilities.
Today’s data feeds into next week’s September quarter national accounts, which are expected to show slim gross domestic product growth.