Australia's survey of private capital expenditures shows spending in this category rose 2.4 percent on the quarter (volumes, seasonally adjusted) in the three months to March after advancing 2.2 percent in the three months to December. Private capex rose 6.3 percent on the year in the three months to March after advancing 3.6 percent previously.

Stronger growth in headline capex was driven by spending on equipment plant and machinery, up 3.7 percent on the quarter after a previous increase of just 0.6 percent. Spending on buildings and structures rose at a slower pace, up 1.3 percent after a previous increase of 3.6 percent. Growth was again weaker in the mining sector, with capex increasing by 1.7 percent on the quarter in the mining sector and advancing 2.7 percent in the non-mining sector.

Today's release also includes the survey's revised forecast for private capex in the 2022-23 fiscal year (in value terms). Officials now expect it to be A$162.6 billion, up 2.7 percent from the previous estimate of A$158.7 billion made three months earlier and also up from $142.4 billion, the actual amount of spending in the 2021-22 fiscal year.

The capex survey covers around 60 percent of total business investment in Australia. More comprehensive information about the recent strength of investment will be published in the GDP report for this quarter, scheduled for release next week.

Capital Expenditures for the first quarter are expected to rise 1.0 percent on the quarter versus 2.2 percent expansion in the fourth quarter.

Private New Capital Expenditure & Expected Expenditure data are estimates of actual and expected new capital expenditure by private businesses for selected industries in Australia. New capital expenditure refers to the acquisition of new tangible assets either on own account or under a finance lease and includes major improvements, alterations and additions. In general, this is expenditures charged to fixed tangible assets accounts excluding expenditure on second hand assets unless these are imported for the first time.

Note: The Australian Fiscal Year begins on July 1 and ends on June 30.

Capital expenditures are a key to sustained growth and this survey provides information about capital spending and the types of assets that are drawing the most attention from industry. The survey, which is conducted quarterly by mail, is based on a random sample of approximately 8,000 units. The sample is stratified by industry, state/territory and derived employment size. The figures obtained from the selected units are supplemented by data from units which have large capital expenditure and are outside the sample framework or not adequately covered by it. Among the assets covered are buildings and structures including both business and residential, equipment for these structures as well as infrastructure spending. Equipment includes fixed equipment such as machinery, autos, office equipment, etc.