FX.co ★ Australia Capital Spending Drops in Q2

Australia’s total new capital expenditure declined by 3.6% quarter-on-quarter in Q2 2026, reversing an upwardly revised 6.9% increase in Q1 and defying market expectations for flat growth. Investment in equipment, plant, and machinery fell 8.9%, following an 18.4% surge in the previous quarter, largely reflecting weaker spending in information media and telecommunications and a more modest rise in mining investment. In contrast, expenditure on buildings and structures rose 2.1%, rebounding from a 3.3% contraction, supported by stronger investment in utilities and in information media and telecommunications. Regionally, capital spending declined in New South Wales (-2.8%), Victoria (-13.9%), Queensland (-0.4%), and South Australia (-1.9%). Increases were recorded in Western Australia (4.0%), Tasmania (9.3%), the Northern Territory (6.8%), and the Australian Capital Territory (3.2%). On an annual basis, private capital expenditure was up 10.7%, easing from an upwardly revised 14.9% increase in the previous quarter.