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Australian investment data due today (capex, Q1)

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The headline is expected at +2% q/q, prior was +3%

  • Tax incentives should give the number for ‘plant and equipment a boost. 

Also in the release is the sixth estimate for capex in 2020/21.

  • upgrades for both mining and non-mining intentions are expected

The second estimate for 2021/22 investment plans should also show an upgrade

Preview, this via Wesptac (in brief) 

  • The recovery in equipment spending appears to have extended into 2021… Businesses are optimistic, activity is rebounding briskly and tax incentives are generous. 
  • On the construction side, the risk is that the downtrend resumes … tracking softer commencements.
  • With the economy rebounding more quickly than anticipated, 2020/21 capex plans have recovered somewhat and prospects are for capex to lift in 2021/22. Further upgrades are likely in this survey
  • Guessing what businesses will guess for Est 2 of 2021/21 is challenging. Potentially, Est 2 will be in the order of … 10% upgrade on Est 1

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