Trailer Magazine

Manufacturing on the rise

  • Posted on Thursday 1st, March 2018.

Businesses are ramping up investment plans, particularly in non-mining sectors, joining a gathering global upswing spurred by tax cuts and infrastructure spending, according to news publication, Australian Financial Review (AFR).

AFR Economics Correspondent, Jacob Greber, said that while spending on new buildings, plant and machinery edged down 0.2 per cent in the December quarter, future spending has been sharply upgraded according to the Australian Bureau of Statistics (ABS).

“Forecast investment spending for 2017-18 has been lifted 4.9 per cent from three months earlier to $115 billion,” said Greber – referring to ABS data. “Companies were also asked for the first time about their plans for capital expenditure in 2018-19. They anticipated spending $84 billion, which is 3.5 per cent more than the same initial forecast for 2017-18 published a year ago. It’s the first time since 2012-13 there has been an increase on the prior year.”

According to economists surveyed by Bloomberg News, equipment investment rose by 2.2 per cent in the quarter, with manufacturers reportedly planning to spend $6.9 billion in 2018-19 ¬– 7.1 per cent higher than first predicted for the current financial year 12 months ago.

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