CBA has released its view on the latest capex numbers, producing a very downbeat report on the outlook

CBA has released its view on the latest capex numbers, producing a very downbeat report on the outlook. It noted that business investment plans normally rise by about 10% at this time of year, but only lifted by 2.3%. The bulk of the pullback was in manufacturing (-25.1%) and mining (-13.6%), with other industries rounding out the declines, falling 2.1%. This fall has been forecast by the Treasury and RBA, but it is the lack of investment by non-mining industries to fill the void which has surprised economists. CBA noted that the RBA might need to lower rates again unless confidence improves and consumers and businesses begin spending again. With such low rates, and property investments returning 9.7%, the bank also noted that investors are likely to be enticed by the higher yields and shift funds from cash to property. (VIEW LINK)