Australia Private Investment

Total new capital expenditure in Australia unexpectedly contracted by 0.1% quarter-on-quarter in the first quarter of 2025, missing market expectations of a 0.5% expansion and following a revised 0.2% increase in the previous quarter. The decline was driven by a 1.3% drop in spending on equipment, plant, and machinery, partially offset by a 0.9% rise in investment in buildings and structures. Investment fell in non-mining industries (-0.9%) but rose in the mining sector (1.9%). Geographically, the Northern Territory recorded the steepest decline (-13.2%), followed by Tasmania (-6.6%), Victoria (-5.3%), Queensland (-0.9%), and New South Wales (-0.1%). In contrast, South Australia (11.1%), the Australian Capital Territory (10.9%), and Western Australia (2.1%) posted significant gains. On an annual basis, private capital expenditure declined by 0.5% through the year to March, following an upwardly revised 1.0% increase in the fourth quarter.