Sadly, there is no Federal Reserve Chair speech scheduled for the Asia time zone today
We'll have to make do with some old data :-D. Q3 (July to September) private capital expenditure!
- Which is an input to the Q3 GDP data due on December 5
- Yesterday we got the construction sector input, a disappointment: Australia - Construction work completed in Q3: -2.8% q/q (expected +0.9%)
Today's data is due at 0030GMT
A couple of previews.
ANZ:
- We believe capital expenditure rose slightly in Q3, but not enough to offset the fall from Q2. Importantly, we expect to see solid growth in machinery and equipment spending (which flows directly into GDP) on the back of solid business conditions and reported investment plans. But the overall spending number is likely to be weighed down by soft engineering construction on the mining front.
- We also expect a solid upgrade to firms' spending plans for 2018-19 in line with the broadly healthy business environment.
This via TD:
- fourth estimate for 2018-19 spending to be upgraded from $A102b to $A110b (mkt $A108.5b) via all three sectors experiencing upgrades
- The RBA last week (Minutes and speech) noted that compared with a year ago, the biggest upside surprise for the Bank in terms of growth outcomes was via non-mining investment.
- Updated planned spending for 2018-19 will be closely watched by the RBA for upgrades to non-mining investment in the light of upbeat manufacturing PMIs and NAB business conditions over the past year or so.
NAB:
- expect modest growth in CapEx
- we don't expect any rebound rebound in mining CapEx … expect mining CapEx softened a touch
- Non-mining Capex … expected to have been stronger this quarter
- overall CapEx is forecast to have lifted 0.4% q/q
- Looking further ahead, we expect there was a modest lift in expectations for 2018/19 investment to $109b.
