FXStreet (Bali) – Is a recession in Australia looming near? Following the latest Capex numbers, one would argue that this gloomy scenario could be the case going forward.
As ANZ reports, “firms’ 2nd estimate for 2015/2016 capital expenditure intentions came in much weaker-than-expected.” The Bank adds that “non-mining investment expectations were further downgraded after the surprisngly soft outcome last quarter, suggesting that the outlook for business investment remains very weak for 2015/2016.”
ANZ concludes: “”The further decline, from an already weak outlook, suggests that businesses are severely lacking in the confidence required to lift investment. The RBA will be disappointed by this soft result, which provides further confirmation that rates are likely to remain on hold for an extended period.”
(Market News Provided by FXstreet)