AusBN - Australian business investment grew during the second quarter of the year as firms increased spending budgets, in a much-needed boost for the economy outside the mining sector.
According to data from the Australian Bureau of Statistics (ABS), investment rose by a seasonally adjusted 0.8% between April and June to nearly AUS$28.3 billion, higher than analyst forecasts of 0.3%.
In particular, spending on equipment, plant and machinery climbed 2.7%, which should add directly to economic growth in Q2.
The unexpected boost in business investment should contribute to a 0.7% growth in Australia’s gross domestic product (GDP) to $1.7 trillion, up from a sluggish 0.3% in the first quarter. Further figures are due next week.
Latest estimates for business investment in the year to June 2018 have also been revised up sharply to $101.8 billion, from $85.4 billion.
Spending plans for important non-mining sectors, including utilities, construction and retail trade, were all running at record highs during Q2.