Private sector investment increased 2.8 per cent in June, beating expectations.Economic growth is forecast to have picked up in June after tradies made last-minute ute purchases and businesses rushed to invest before the expiry of generous pandemic-era tax breaks.
“Business investment looks set to have been a bright spot in an otherwise challenging quarter for the economy, with consumer activity slowing under the strain of rising interest rates,” Mr Langcake said. Capital spending growth in the March quarter was also revised higher to 3.7 per cent from 2.4 per cent, suggesting investment this year was stronger than previously thought.
However, construction work is predicted to continue marching higher, as builders work through a large pipeline of incomplete projects.
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