The Oceania Times

Top Menu

  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Main Menu

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

logo

The Oceania Times

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

  • Multibagger small-cap stock fixes record date for dividend, takes yield to 3.05%

  • World shares recover after U.S. jobs report sell-off

  • Sisi gives directives to expand distributing subsidized food commodities via army, police, supply outlets: Qabbaj

  • 7 Best Ways To Get The Best Currency Exchange Rates

Investment
Home›Investment›Australia business investment dips in Q1, outlook sharply upgraded

Australia business investment dips in Q1, outlook sharply upgraded

By Megan
May 26, 2022
16
0
Share:

Construction workers go about their day near scaffolding at a construction site in central Sydney, Australia, September 11, 2018. REUTERS/David Gray

Register now for FREE unlimited access to Reuters.com

SYDNEY, May 26 (Reuters) – Australian business investment fell unexpectedly in the first quarter as floods and bottlenecks hit building work, though firms sharply lifted plans for spending in the year ahead in a boost to the economic outlook.

Data from the Australian Bureau of Statistics out on Thursday showed private capital spending dipped a real 0.9% in the March quarter, from the previous quarter, missing forecasts of a 1.5% increase.

Spending on buildings fell 1.7%, offsetting a 1.2% rise in investment in plant and machinery which is important as this will directly contribute to economic growth in the quarter.

Register now for FREE unlimited access to Reuters.com

Promisingly, firms upgraded spending plans for the year to June 2023 to a strong A$130.5 billion ($92.49 billion), up almost 12% on the previous estimate and above the A$122 billion analysts had looked for.

The report echoes data showing construction work done fell 0.9% in the first quarter as bad weather and supply shortages dragged on activity, particularly in housing where building costs rose at the fastest pace in 21 years.

All of which suggests some downside risk to gross domestic product (GDP) due next week where analyst forecasts had ranged from quarterly growth as low as 0.2% to as much as 1.0%.

The main unknown is household spending on services, which could have been hit early in the quarter by a sudden outbreak of the Omicron variant of COVID-19.

Retail sales did rise a solid 1.2% in the quarter to a record high A$93 billion in real terms with consumers not yet deterred by surging goods prices.

However, much of this demand was met by an unusually steep increase in imports which means trade could subtract as much as 1.5 percentage points from GDP in the quarter.

Given that drag, headline GDP might show little growth even though domestic demand was very strong.

The Reserve Bank of Australia (RBA) was confident enough in the recovery to raise interest rates by a quarter point to 0.35% this month, the first hike since 2010, and to flag more ahead.

Markets are wagering on another quarter point rise to 0.60% in June and a string of moves to 2.5% by year end.

Most economists argue market pricing is too aggressive given households hold record amounts of debt and are exposed to rising borrowing costs.

Yet, hawks were emboldened this week when New Zealand’s central bank hiked by 50 basis points to 2.0% and projected rates of 3.5% by year end.

($1 = 1.4110 Australian dollars)

Register now for FREE unlimited access to Reuters.com

Reporting by Wayne Cole; Editing by Christopher Cushing & Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

Source link

TagsASIAAUAUNZCENCOENCOEN08CONFIGECIECOECONGDPINDSINDS08ISERISER08MCENEWS1PLCYRBATOPCMBTOPNWS
Previous Article

Insider Buying: LianBio (NASDAQ:LIAN) Director Purchases 120,000 ...

Next Article

Crystallization of nickel out of liquid obser

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Megan

Related articles More from author

  • Gold and Precious Metals

    Taiwan tensions stir some buying in China, India demand muted

    August 5, 2022
    By Megan
  • Australian Economy

    Uber agrees to Australia minimum pay body after similar moves in Britain, Canada

    June 28, 2022
    By Megan
  • Stock Shares

    Asian stocks track global shares lower, U.S. CPI in focus

    June 10, 2022
    By Megan
  • Stock Shares

    Asian stocks gain as investors brace for U.S. inflation data

    July 13, 2022
    By Megan
  • Investment

    Canada to invest millions to cut emissions at BHP potash mine

    June 12, 2022
    By Megan
  • Financial Market

    Volt, Australia’s first online-only bank, shuts down due to fund-raising woes

    June 29, 2022
    By Megan

Leave a reply Cancel reply

You may interested

  • Investment

    Ford Foundation doubles investment for trans organizations, makes sweeping commitments to support LGBTQ+ communities

  • Financial Market

    Hard work and determination: Creating India’s biggest cryptocurrency community

  • Financial Market

    S. Korea braces for ‘perfect storm’ in financial market

  • LATEST REVIEWS

  • TOP REVIEWS

Timeline

  • August 8, 2022

    RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

  • August 8, 2022

    Multibagger small-cap stock fixes record date for dividend, takes yield to 3.05%

  • August 8, 2022

    World shares recover after U.S. jobs report sell-off

  • August 8, 2022

    Sisi gives directives to expand distributing subsidized food commodities via army, police, supply outlets: Qabbaj

  • August 8, 2022

    7 Best Ways To Get The Best Currency Exchange Rates

Best Reviews

Latest News

Financial Market

RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form ...

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the consolidated financial statements and related notes included elsewhere in this ...
  • Multibagger small-cap stock fixes record date for dividend, takes yield to 3.05%

    By Megan
    August 8, 2022
  • World shares recover after U.S. jobs report sell-off

    By Megan
    August 8, 2022
  • Sisi gives directives to expand distributing subsidized food commodities via army, police, supply outlets: Qabbaj

    By Megan
    August 8, 2022
  • 7 Best Ways To Get The Best Currency Exchange Rates

    By Megan
    August 8, 2022
  • Recent

  • Popular

  • Comments

  • RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form ...

    By Megan
    August 8, 2022
  • Multibagger small-cap stock fixes record date for dividend, takes yield to 3.05%

    By Megan
    August 8, 2022
  • World shares recover after U.S. jobs report sell-off

    By Megan
    August 8, 2022
  • Sisi gives directives to expand distributing subsidized food commodities via army, police, supply outlets: Qabbaj

    By Megan
    August 8, 2022
  • RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form ...

    By Megan
    August 8, 2022
  • Australian economy survived Covid better than most but recovery could slow, OECD says | Australian ...

    By Megan
    September 14, 2021
  • The Best Online Brokers, According to 5 Financial Experts

    By Megan
    September 14, 2021
  • Is Disaster Looming for Australia’s Economy?

    By Megan
    September 29, 2021

Trending News

  • Financial Market

    RAND CAPITAL CORP Management’s Discussion and Analysis of Financial Condition and Results of Operations (form ...

    You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the consolidated financial statements and related notes included elsewhere in this ...
  • Stock Shares

    Multibagger small-cap stock fixes record date for dividend, takes yield to 3.05%

    With a market valuation of ₹877.22 crore, Tamilnadu Petroproducts Ltd. is a small-cap company that engages in the chemicals industry. The company manufactures such as Caustic Soda, Chlorine & Derivatives, ...
  • Stock Shares

    World shares recover after U.S. jobs report sell-off

    Euro STOXX gains 0.8% Wall Street set to gain Markets narrow odds on 75 bp hike ahead of U.S. CPI Dollar falls Oil down after earlier gains LONDON, Aug 8 ...
  • Commodities

    Sisi gives directives to expand distributing subsidized food commodities via army, police, supply outlets: Qabbaj

    A worker sells subsidized food commodities at a government-run supermarket in Cairo, Egypt, February 14, 2016. REUTERS/Mohamed Abd El Ghany Minister of Social Solidarity Nevin Qabbaj said on Wednesday that ...
  • Currencies

    7 Best Ways To Get The Best Currency Exchange Rates

    How do you find the best currency exchange rates table? If you’re planning on traveling abroad and need to currency exchange, this can be the most frustrating part of preparing ...
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© Copyright The Oceania Times. All rights reserved.

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.