Australian private new capital expenditure edged up 0.4% in the December 2025 quarter, reaching a level 7.8% higher than the previous year, according to the latest Australian Bureau of Statistics data.
The modest quarterly growth reflects a tug-of-war between booming infrastructure projects and a cooling in equipment acquisition.
ABS Head of Business Statistics, Tom Lay, noted that the lift was primarily fuelled by buildings and structures, which rose 2.3%.
The sector saw significant momentum from renewable energy initiatives, particularly battery storage systems, wind, and solar developments.
While data centre construction remained a pillar of strength, a 1.7% decline in equipment and machinery investment—largely due to a 30.1% drop in the information media & telecommunications sector—acted as a significant drag following record-high spending in the prior quarter.
Sectoral performance remained mixed; non-mining industries grew by 0.8%, successfully offsetting a 0.8% contraction in the mining sector.
Geographically, Western Australia (+3.9%), Victoria (+2.0%), and South Australia (+4.8%) led the nation in investment growth. Looking ahead, the outlook remains optimistic.
Businesses have revised their planned capex for 2025-26 upwards by 4.3%, while the initial estimate for the 2026-27 financial year sits at a robust 7.3% higher than the equivalent first estimate for the current period, suggesting a sustained appetite for long-term expansion despite immediate fluctuations in hardware spending.