Australian Businesses Investment Dropped 9.2% in September

Business investment by Australian companies slumped a record 9.2 percent in the September quarter, causing the Aussie dollar to drop 0.4 percent against the greenback.

The Australian Bureau of Statistics survey for the quarter showed that total new private capital expenditure fell to 31.4 billion Australian dollars, a 20 percent year-on-year, seasonally adjusted fall.

Investment in buildings and structures was down 9.8 percent at 19.8 billion Australian dollars, while spending on equipment, plant and machinery was down 8.2 percent at 11.5 billion Australian dollars.

Companies also anticipated spending less on capex in 2015-2016 than they did in 2014-2015. The survey included the fourth estimate for 2015-2016 expenditure, which came in at $120.3 billion, almost 21 percent lower than the fourth estimate for the previous fiscal year.

The fourth estimate was, however, higher than estimate three, which was for 114.8 billion in capex spending.

The Aussie dropped a quarter of a cent to $0.7230 when the survey was released.

via CNBC

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