Australia AUD

Australia Private Capital Expenditure QoQ

Info

History

Chart

Impact:

Low

Latest Release:

Date:

Surprise:

-1.6%

Actual:

-2.1%

Forecast: -0.5%

Previous/Revision:

-4%

Period: Q4

What Does It Measure?

Australia's Private Capital Expenditure (Capex) measures the total spending by private sector firms on fixed assets, which includes structures, equipment, and machinery. It primarily focuses on assessing business investment trends, providing insights into future production capacity, economic growth, and overall business confidence within the national context.

Frequency

The Private Capital Expenditure report is released quarterly, with the figures typically published around the sixth week after the quarter ends, presenting a final estimate of the prior quarter's investment.

Why Do Traders Care?

Traders closely monitor this indicator as it reflects the level of business investment in the economy, which can significantly influence GDP growth forecasts and economic health. Higher-than-expected Capex data is generally bullish for the Australian dollar (AUD) and equities, as it signals confidence among businesses, while lower numbers may indicate sluggish economic conditions and negatively affect financial markets.

What Is It Derived From?

The Private Capital Expenditure figures are derived from surveys conducted by the Australian Bureau of Statistics, capturing investment intentions from a broad range of companies across various industries. The survey collects data on planned capital expenditures, which is then aggregated and adjusted for inflation to produce a more accurate estimate of private sector investment.

Description

Preliminary reports on Private Capex provide early estimation based on initial surveys, while final reports present refined data that incorporates late submissions and revisions, offering a more accurate reflection of actual spending. This indicator is typically analyzed on a Quarter-over-Quarter (QoQ) basis, focusing on changes in investment levels over successive quarters to assess trends in capital spending.

Additional Notes

The Private Capital Expenditure indicator serves as a leading economic measure, indicating potential future economic activity and business expansion. Its trends can offer valuable insights not only about the Australian economy but also in relation to global business cycles, thereby impacting investors’ perceptions of Australia's economic outlook compared to other advanced economies.

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.

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	Actual	Forecast	Previous	Surprise
Feb 23, 2017	-2.1%	-0.5%	-4%	-1.6%
Feb 25, 2016	0.8%	-3%	-8.4%	3.8%
Nov 26, 2015	-9.2%	-3%	-4.4%	-6.2%
Aug 27, 2015	-4%	-2.5%	-4.7%	-1.5%