Higher interest rates haven’t dampened investment intentions, with new data showing businesses are poised to record an increase in capital spending next year, but some economists say the outlook could sour.
In a sign that investment intentions remain robust, the estimate was 11 per cent higher than the first surveyed estimate for the 2023 financial year, suggesting year-on-year growth is likely. “Expected capex plans are in nominal terms and no doubt are somewhat boosted by the elevated rate of inflation,” he added.
“Details are limited, though it appears most of the strength in investment intentions owes to the non-mining sector, while spending plans across the resources industry are more subdued and likely underpinned by depreciation/replacement capex.”Outside the mining sector, planned investment intentions for the 2024 financial year were 13 per cent higher than the first survey for 2023.