Australia: Q2 capex likely to come in softer – TD Securities

Analysts at TD Securities are anticipating Australia’s Q2 CAPEX to come in softer, -0.5% q/q, led by declines in building and structures.

Key Quotes

“Plant and Equipment which directly feeds into GDP is also expected to be softer, -0.5% q/q. Accompanying this data, we get final capex for 2018/19, which we forecast to be A$124b, nearly 4% up on 2017/18.”

“The 3^rd estimate for 2019/20 raw capex is expected to be A$117b, +18% on the 2^ndestimate on gains in mining, manufacturing and services capex.”