Capex conundrum for the RBA

David Scutt

Scutt Partners

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)

David Scutt
David Scutt
Independent Market Strategist
Scutt Partners

David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...


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