Private capital expenditure fell 0.1% quarter-over-quarter in the March quarter after an upwardly revised quarter-over-quarter rise of 0.2% in the fourth quarter of 2024, according to a Thursday report by ANZ Research.
Meanwhile, private sector construction activity rose 1.7% in the first quarter over the same period.
The first quarter GDP growth estimate components suggest that GDP growth came in at 0.4% quarter-over-quarter compared with the analysts' early first quarter GDP growth forecast of 0.6%. The lower estimate of 0.4% also includes an allowance for a decline in public sector investment, given the weakness in public construction work done.
Estimates of capital expenditure plans for 2025-2026, an indicator of business investment, are very similar to the same estimates for 2024-2025, particularly outside mining. This suggests minimal growth over the next year or so for business investment, given that tariff-related uncertainty is likely to be a headwind.