Private new capital expenditure in Australia decreased by 2.2% in the June quarter, according to the Australian Bureau of Statistics.
The decline, while reflecting a 0.3% increase compared to the same period in 2023, underscores a significant shift in business investment trends.
Robert Ewing, ABS head of business statistics, noted that investment in non-mining industries fell 3.6%, though this was partially mitigated by a 1.5% increase in mining-related capex.
The overall decrease was driven by a 3.8% drop in spending on buildings and structures, with a more pronounced 7.7% decline in non-mining sectors.
Spending on new equipment and machinery also fell by 0.5%.
"The decline in buildings and structures was largely due to reduced investment in major engineering and transport infrastructure projects. However, this was somewhat balanced by a 2.8% increase in mining industry investment in this category," Ewing explained.
Retail trade experienced a reduction in equipment and machinery investment, down 25.9%.
Small and large retailers contributed to the decrease, citing economic challenges in the retail sector.
Among states and territories, Victoria saw the largest decline in capex, down 4.1%, while the Northern Territory reported a substantial increase of 23.5%, driven by higher mining investments.
The release also includes the final estimate for 2023-24, which shows a 10.2% increase in capex compared to the previous year.
Looking ahead, the third estimate for 2024-25 indicates a projected 10.3% rise in planned capex.
Ewing highlighted that the manufacturing sector anticipates a major investment boost next year, with several large industrial projects expected to drive increased spending.