New private capital expenditure has risen higher than expected during the third quarter, according to the latest figures from the Australian Bureau of Statistics.
The figures show CAPEX rose by 12.3%, seasonally adjusted, during the September quarter, although the forecast was just for a rise of 8%.
The latest estimate for expenditure in 2011-12 is $158 billion, up by 26.9% from the previous corresponding period.
The seasonally adjusted estimate for buildings and structures rose by 17.1%, while the estimate for equipment, plant and machinery rose by 6.3%.
Federal treasurer Wayne Swan has defended growth forecasts contained in the latest mid-year economic outlook, despite opposition that the European debt crisis will make matters worse.
“What the Treasury does is makes its best judgment about the prospects for the year ahead, based on where we are at this point in time,” Swan told ABC Radio this morning.
Swan also said the forecasts take into account a downturn in Europe that could spread across Australia, along with a downturn in spending from China.
However, opposition treasury spokesman Joe Hockey has said it is “quite miraculous accounting” the Government has used to result in a surplus.
The Australian sharemarket has opened flat this morning after a weak lead in the United States, where investors are still fearful over the financial situation in Europe.
The benchmark S&P/ASX200 index was up 10 points or 0.3% to 4,112.6 at 12.00 AEST, while the Australian dollar lifted above parity again after CAPEX data was released, to just over $US1.00.
AMP shares rose 0.73% to $4.13, while Commonwealth Bank shares fell 0.44% to $47.16. NAB rose 0.74% to $23.27 as Westpac fell 0.54% to $20.34.
In the United States, the Dow Jones Industrial Average rose 32 points or 0.3% to 11,555.6.
Grocery wholesaler Metcash has upgraded its full-year guidance, despite posting a fall in first-half net profit.
For the six months to October 31, Metcash profits fell 14.3% on the previous reporting period to $94.4 million.
“We continue to face price deflation across a range of categories,” chief executive Andrew Reitzer said in a statement.
“There is no doubt that consumers are remaining price conscious in such an uncertain economic climate.”
Metcash now expects to post low-to-mid single digit earnings per share growth in the full year.
It will pay an interim fully-franked dividend of 11.5 cents, which is half a cent up on the previous reporting period.
Prime Minister Julia Gillard assured manufacturers they will get help to adapt to changes in the industry that are threatening jobs and output.
Gillard was speaking as the first meeting of the Government’s new Manufacturing Taskforce, which opened in Canberra today.
“This is a moment to roll the sleeves up; government, business and unions working together for the future of Australian jobs and manufacturing,” she told the taskforce she is chairing.
The Prime Minister said engagement with Asia would help offset pressures on the industry such as the high Australian dollar.
“Our nation will get new opportunities as we see the growth in Asia, and in particular the growth of the middle class in Asia, more than a billion people who will want the kind of things we want,” she said.
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