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29 May 2015
Australia: Scope for improvement in non mining investment - DB
FXStreet (Bali) - According to Deutche Bank Markets Research Team in Australia, despite the disappointing Australia's capex yesterday, there remains scope for an improvement in the non mining investment outlook.
Key Quotes
"In Australia, the major release of the week was the capex survey – and specifically the weak investment expectations data for 2015-16."
"Given the pick- up in employment growth over the past six months and the improvement in business conditions over the past year we think there remains scope for an improvement in the non mining investment outlook."
"Elsewhere the composition of the construction work done data – strength in residential and a pick-up in non-residential building work, a slump in engineering, and on-going softness in public investment is broadly in line with how we are viewing the economy at the current point in time."
"As far as our Q1 GDP forecast is concerned, the week’s two partials (construction work done and machinery and equipment investment from the capex survey) have left our estimate unchanged at 0.5% qoq."
Key Quotes
"In Australia, the major release of the week was the capex survey – and specifically the weak investment expectations data for 2015-16."
"Given the pick- up in employment growth over the past six months and the improvement in business conditions over the past year we think there remains scope for an improvement in the non mining investment outlook."
"Elsewhere the composition of the construction work done data – strength in residential and a pick-up in non-residential building work, a slump in engineering, and on-going softness in public investment is broadly in line with how we are viewing the economy at the current point in time."
"As far as our Q1 GDP forecast is concerned, the week’s two partials (construction work done and machinery and equipment investment from the capex survey) have left our estimate unchanged at 0.5% qoq."