Capex conundrum for the RBA
Capex conundrum for the RBA? Australian Q3 capital expenditures figures will be released at 11.30am this morning. After bouncing 1.1% in Q2 economists are looking for a decline of 1.5% in Q3. Given it directly feeds into GDP calculations expect the plant, equipment and machinery figure, along with the 4th estimate of 2014/15 capex spend, to be the most influential figures on the market. The former is expected to decline 1.0% following a 0.9% drop in Q2 while the 3rd estimate of 2014/15 spend was $145.2b. Any significant undershoot on these figures, particularly together, will have ramifications for the outlook of domestic interest rates. (VIEW LINK)