Australia Building Capital Expenditure q/q

Australia Building Capital Expenditures q/q reflect private capital expenditures on the construction of buildings and structures in the reported quarter compared to the previous one. The indicator is calculated based on data collected by the Australian Bureau of Statistics from a survey of 9,000 private companies representing different sectors of the national economy (in accordance with the generally accepted classification).

The following sectors are excluded from the calculation: agriculture, forestry, fishing, education, health care, pension insurance funds. The expenditures of departments, governmental authorities and other state bodies are also excluded from the calculation.

The sample does not include companies with a small number of employees: they are believed to have little effect on the national building capital expenditures. The sample is reviewed on a quarterly basis: companies that cease their activities are excluded from the survey, and new companies are included.

The survey covers new buildings and technological structures, restoration and reconstruction, engineering communications and other types of fixed assets. Also, the calculation includes construction of roads, bridges, wharves, harbours, railway lines, pipelines, etc.

The growth in capital expenditures is an indication of business development. Therefore, the indicator can be an indirect measure of medium- and long-term economic activity growth. Its near-term interpretation is connected with construction approvals and Australian construction index. The growth of these indicators can be seen as positive for the construction industry, which, in turn, makes a significant contribution to GDP.

Indicator growth can have a positive effect on the Australian dollar.