Capital Expenditure by the Private Sector
Published: October 7, 2024This report analyses total capital expenditure by the private sector. This includes expenditure on machinery and equipment, dwelling and non-dwelling construction, cultivated biological resources, intellectual property products and any ownership transfer costs. The data for this report is sourced from the Australian Bureau of Statistics and is measured in billions of seasonally adjusted 2021-22 dollars.
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Recent Trends – Capital Expenditure by the Private Sector
IBISWorld forecasts capital expenditure by the private sector to inch downwards by 0.2% in 2024-25, to total $441.6 billion. Capital expenditure on private dwellings is anticipated to fall over the year, while a downward trend in commodity prices is projected to weigh on capital expenditure from some areas of the Mining division. Even so, climbing business profit and improvements in business confidence are placing upwards pressure on capital expenditure on machinery and equipment, limiting drops in capital expenditure by the private sector over the year.
Despite a forecast drop in the cash rate, an elevated cash rate environment and lingering inflationary pressures are expected to dampen private capital expenditure over 2024-25. While lower interest rates typically stimulate investment, the prevailing high rates coupled with ongoing inflation are likely to hinder private capital expenditure. Mounting costs for materials, labour and overheads have caused many firms to cut back and delay or delay investment.
5-Year Outlook – Capital Expenditure by the Private Sector
IBISWorld forecasts capital expenditure by the private sector to ed...
