New capital expenditure rises 2.8%

Media Release

Released

31/08/2023

Source

Private New Capital Expenditure and Expected Expenditure, Australia, June 2023

Private new capital expenditure (capex) rose 2.8 per cent (seasonally adjusted, chain volume measure) in the June quarter 2023 and was 10.8 per cent higher than a year ago, according to figures released today by the Australian Bureau of Statistics (ABS).

Robert Ewing, ABS head of new capital expenditure statistics, said the result was driven by businesses investing more in new equipment and machinery (+1.9 per cent) as well as in building and structures (+3.5 per cent).

“Increased investment in equipment and machinery reflects a further easing of supply-chain disruptions, with the availability of vehicles improving significantly during the quarter. Some businesses also brought investment plans forward, ahead of the end of the temporary full expensing tax incentive on 30 June.”

“The increase in investment in buildings and structures was boosted by a number of mining projects for resources such as lithium used in batteries, and the commencement of some previously delayed projects in non-mining industries.”

Building and structures, and Equipment and machinery
	Building - Seasonal ($m)	Building - Trend ($m)	Equipment - Seasonal ($m)	Equipment - Trend ($m)
Jun-03	6,707	6,870	9,142	9,417
Sep-03	7,132	7,021	9,704	9,537
Dec-03	7,244	7,203	9,763	9,699
Mar-04	7,122	7,416	9,383	9,665
Jun-04	7,813	7,598	9,674	9,820
Sep-04	7,800	7,844	9,990	10,226
Dec-04	8,042	8,146	11,279	10,646
Mar-05	8,831	8,706	10,528	10,926
Jun-05	9,336	9,612	11,298	11,314
Sep-05	10,875	10,599	11,847	12,006
Dec-05	11,910	11,663	12,985	12,659
Mar-06	12,285	12,588	12,901	12,817
Jun-06	13,581	12,891	12,396	12,658
Sep-06	12,651	12,724	12,616	12,474
Dec-06	11,963	12,678	12,499	12,592
Mar-07	14,658	14,324	13,007	13,104
Jun-07	15,407	14,857	13,669	13,446
Sep-07	14,467	15,178	13,673	13,736
Dec-07	15,588	15,273	14,032	14,066
Mar-08	15,745	15,413	14,425	14,645
Jun-08	15,391	15,999	15,425	15,243
Sep-08	16,995	17,285	15,680	15,405
Dec-08	19,359	18,318	14,973	15,200
Mar-09	18,151	18,397	14,713	14,790
Jun-09	17,777	17,468	14,985	14,741
Sep-09	16,088	16,649	14,357	15,031
Dec-09	16,541	16,523	15,962	15,237
Mar-10	17,413	17,102	14,908	14,928
Jun-10	17,526	18,025	14,336	14,354
Sep-10	19,562	18,838	13,664	14,216
Dec-10	19,370	19,627	15,101	14,847
Mar-11	20,953	21,189	15,903	15,655
Jun-11	23,007	23,521	16,005	16,226
Sep-11	27,624	26,394	16,580	16,472
Dec-11	27,993	29,223	16,631	16,606
Mar-12	31,875	31,414	16,667	16,703
Jun-12	33,155	32,460	16,688	16,866
Sep-12	31,835	32,254	17,145	16,998
Dec-12	31,288	31,211	17,038	16,858
Mar-13	30,492	30,884	16,239	16,493
Jun-13	31,111	31,328	15,960	15,909
Sep-13	32,455	31,723	15,580	15,298
Dec-13	31,545	31,713	14,322	14,686
Mar-14	30,003	31,363	14,585	14,378
Jun-14	31,339	31,098	14,197	14,584
Sep-14	30,634	30,609	15,331	15,025
Dec-14	29,793	29,497	15,222	15,206
Mar-15	27,459	27,814	14,981	14,882
Jun-15	26,593	26,343	14,236	14,215
Sep-15	23,991	24,748	13,454	13,744
Dec-15	24,575	23,715	13,757	13,654
Mar-16	22,213	22,103	13,818	13,835
Jun-16	19,900	20,321	14,067	13,959
Sep-16	18,960	19,131	13,870	13,884
Dec-16	19,090	18,977	13,742	13,757
Mar-17	19,372	19,263	13,660	13,703
Jun-17	19,458	19,574	13,838	13,812
Sep-17	19,836	19,740	14,061	14,110
Dec-17	19,783	19,722	14,429	14,437
Mar-18	19,408	19,457	14,976	14,786
Jun-18	19,167	19,122	14,785	15,132
Sep-18	18,682	18,902	15,730	15,415
Dec-18	19,267	19,024	15,499	15,618
Mar-19	18,741	18,711	15,630	15,654
Jun-19	18,051	18,344	15,660	15,534
Sep-19	18,257	17,980	15,246	15,389
Dec-19	17,449	17,590	15,271	15,143
Mar-20	17,256	16,989	14,960	14,980
Jun-20	16,277	16,302	13,577	15,027
Sep-20	15,765	15,893	13,665	15,289
Dec-20	15,885	15,967	14,684	15,663
Mar-21	16,496	16,458	15,958	15,924
Jun-21	17,185	17,043	16,038	16,012
Sep-21	17,367	17,531	16,019	16,032
Dec-21	17,895	17,755	16,033	16,101
Mar-22	17,889	17,712	16,243	16,242
Jun-22	17,430	17,681	16,477	16,341
Sep-22	17,841	17,953	16,386	16,440
Dec-22	18,768	18,636	16,504	16,686
Mar-23	19,370	19,380	17,203	17,073
Jun-23	20,046	19,994	17,535	17,514

Building and structures, and Equipment and machinery

[""," Building - Seasonal"," Building - Trend","  Equipment - Seasonal"," Equipment - Trend"]

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The construction industry recorded the largest rise in total capex, up 30.5 per cent after large falls in the last two quarters.

“The rebound in capex in the construction industry was driven by small businesses receiving vehicles and construction machinery after extended delivery delays,” Mr Ewing said.

More detailed industry and state analysis and further information on the statistical methodology is available in New Capital Expenditure (cat no. 5625.0).

Media notes

New capital expenditure refers to the acquisition of new tangible assets and includes major improvements, alterations, and additions.
All statistical figures in this media release are in seasonally adjusted volume terms.
Seasonal adjustment is the process of estimating and removing seasonal effects to allow comparison of data for adjacent months. Volume estimates measure changes in value after the direct effects of price changes have been removed. See methodology for more details.
When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm Mon-Fri).
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New capital expenditure rises 2.8%

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