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Australia's Q3 Capital Expenditure Falls More Than Expected

Australia's capital expenditure declined more than expected in the third quarter, data released by the Australian Bureau of Statistics showed on Thursday.

Total new capital expenditure decreased 3 percent sequentially in the September quarter, which was bigger than the expected decline of 1.5 percent. Nonetheless, the pace of drop eased from -6.4 percent in the second quarter.

Investment in buildings and structures fell 3.7 percent and equipment, plant and machinery investment declined 2.2 percent in the third quarter.

According to the fourth estimate, investment for 2020-21 was 6.3 percent higher than the previous estimate.

On a yearly basis, total new capital expenditure was down 13.8 percent in the third quarter.

Ben Udy, an economist at Capital Economics, said private investment fell by a moderate 1.2 percent sequentially in the third quarter, and firms' expectations of future capital expenditure suggest it may be nearing the trough.

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