Australia AUD

Australia GDP Capital Expenditure

Impact:
High
Source: Australian Bureau of Statistics

Latest Release:

Date:
Surprise:
4%
| AUD
Actual:
-4%
Forecast: -8%
Previous/Revision:
-0.2%
Period: Q3
What Does It Measure?
Australia's GDP Capital Expenditure measures the total value of new investment in fixed assets made by businesses in a given period, focusing primarily on investment in structures, machinery, and equipment. It reflects the overall economic activity and business sentiment within Australia by assessing capital spending as a key indicator of future production capacity and economic growth.
Frequency
This report is released quarterly, with the typical release occurring around the end of the month following the close of the quarter and provides final figures, not preliminary estimates.
Why Do Traders Care?
Traders track Australia’s GDP Capital Expenditure closely because it directly influences economic growth forecasts and can impact monetary policy decisions; stronger-than-expected expenditure typically boosts the Australian dollar and equity markets, while weaker data can lead to bearish sentiment. The report's timely nature plays a critical role in shaping expectations for future GDP growth and overall economic health.
What Is It Derived From?
The indicator is derived from a survey conducted among businesses across various sectors regarding their planned capital expenditure on fixed assets. This is aggregated using data collection methodologies that ensure representative sampling and rigorous standards for accurate reporting, with adjustments made based on industry-specific dynamics.
Description
Preliminary reports are based on early estimates of capital spending intentions, which are subject to revision as more data becomes available; the final reports present a more accurate reflection of actual spending by businesses. Traders often focus on the preliminary data for immediate market impact due to its timely nature, while final data may lead to further adjustments in market expectations.
Additional Notes
The Capital Expenditure measure serves as a leading economic indicator, providing insight into business confidence and potential economic growth; it is crucial for analyzing Australia's economic trajectory in comparison to other economic reports. This indicator is often analyzed alongside GDP growth rates and other business sentiment surveys, revealing broader economic trends within Australia and globally.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for AUD, Bullish for Stocks. Lower than expected: Bearish for AUD, Bearish for Stocks. A hawkish tone: Signaling higher interest rates or inflation concerns is usually good for the AUD but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
Dec 02, 2015
-4%
 -8%
-0.2%
 4%
Sep 02, 2015
0.4%
-0.7%
Jun 03, 2015
-1.2%
0.3%