Australia’s plant and machinery capital expenditure jumped 18.1% in the first quarter of 2026 on a quarter-over-quarter basis, sharply reversing a -1.7% decline recorded in the fourth quarter of 2025. The data, updated on 28 May 2026, signal a strong rebound in business investment momentum following a weak end to last year.
The previous reading, covering Q4 2025, showed a contraction in plant and machinery spending compared with the third quarter of 2025. In contrast, the latest figure reflects a robust pickup in investment as firms increased outlays on equipment and machinery in Q1 2026 relative to Q4 2025.
The quarter-on-quarter comparison framework underscores the scale of the turnaround: where businesses had been cutting back on capital expenditure late in 2025, they have now moved decisively back into expansion mode, potentially setting a stronger foundation for Australia’s near-term growth outlook.
