Total new capital expenditure in Australia surged 6.5% quarter-on-quarter in the first quarter of 2026, accelerating from an upwardly revised 0.7% gain in the previous quarter and far surpassing market expectations for a 1.0% increase. Investment in equipment, plant, and machinery jumped 18.1%, rebounding sharply from a 1.3% decline in Q4, largely driven by a strong resurgence in non-mining sectors (up 20.1% vs -1.2% previously). In contrast, spending on buildings and infrastructure fell 3.8%, reversing a 2.5% rise in the prior quarter, mainly reflecting weaker non-mining investment (-4.3% vs 4.4%).
Regionally, capital spending rose sharply in New South Wales (22.1%) and Victoria (12.7%), while South Australia recorded only a slight increase (0.2%). By comparison, investment in the Northern Territory slumped 39.8%, with declines also seen in Queensland (-3.0%), Western Australia (-4.3%), Tasmania (-8.0%), and the Australian Capital Territory (-9.4%). On an annual basis, private capital expenditure rose 14.6%.
