Capex expectations hold up

David Llewellyn-Smith

Thursday 29 February 2024

Via the ABS comes Private Capex Expectations.

Estimate 1 for 2024-25 is $145.6b
This is 12.6% higher than Estimate 1 for 2023-24

These numbers are pretty good, given the slowing economy. But you must remember that average realisation ratios tend to slow the growth with each new update.

Much of this survey would have been taken before the economy slowed post-November hike.

Private gauges have shown a distinct slowing in capex intentions since then:

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.