Australian Bureau of Statistics

Rate the ABS website
ABS Home > Statistics > By Catalogue Number
ABS @ Facebook ABS @ Twitter ABS RSS ABS Email notification service
1360.0 - Measuring Australia's Economy, 2003  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 03/02/2003   
   Page tools: Print Print Page RSS Feed RSS Bookmark and Share Search this Product  
Contents >> Section 4. Domestic Consumption and Investment >> Private New Capital Expenditure

The trend estimate of total actual private new capital expenditure, in chain volume terms, generally increased strongly over the six years from June quarter 1992 to March quarter 1998. The March quarter 1998 estimate ($11,164m) was 97% higher than the June quarter 1992 level. The series then decreased in most quarters until June quarter 2001, with the estimate in that quarter being 15% below the March 1998 peak. The series has again increased through 2001-02, with the June quarter 1992 estimate being 8% higher than in June quarter 1991 but still 8% below the March quarter 1998 level.





ACTUAL PRIVATE NEW CAPITAL EXPENDITURE, CHAIN VOLUME MEASURES(a)
Period
Building and structures

$m
Equipment, plant and machinery

$m
Total

$m

ANNUAL (ORIGINAL)
1996–97
16,181
25,904
41,240
1997–98
14,436
29,851
44,017
1998–99
14,631
28,403
42,658
1999–2000
12,321
29,893
42,143
2000–01
9,954
29,357
39,311
2001–02
9,302
30,413
39,714

QUARTERLY (TREND)
2000–01
September
2,836
7,545
10,367
December
2,513
7,422
9,935
March
2,347
7,223
9,575
June
2,338
7,138
9,479
2001–02
September
2,350
7,240
9,591
December
2,322
7,486
9,808
March
2,293
7,740
10,033
June
2,304
7,931
10,232

(a) Reference year for chain volume measures is 2000-01.

Source: Private New Capital Expenditure and Expected Expenditure, Australia (5625.0).


Explanatory Notes

The private new capital expenditure series relates to new capital expenditure by private non-farm businesses in Australia.

Capital expenditure may be for assets which will increase production, increase efficiency or replace old equipment. New capital expenditure refers to the acquisition of new tangible assets either on own account or under a finance lease and includes major improvements, alterations and additions. In general, expenditure on second-hand assets is excluded unless these are imported for the first time.

The estimates are broken down by asset type (buildings and structures; equipment, plant and machinery), by industry (mining; manufacturing; and other selected industries), and by state/territory.

The estimates of private new capital expenditure are an important component in the compilation of the Australian national accounts. They are used, along with other data, in measuring private gross fixed capital formation, which forms part of the expenditure based measure of gross domestic product (GDP) and is also shown in the capital account. In compiling the national accounts estimates, acquisitions of second-hand assets are added and disposals of second-hand assets are subtracted.

As well as estimates of actual expenditure, estimates of expected private new capital expenditure for periods up to 18 months in advance are also compiled. Once actual expenditure for a financial year is known, it is useful to compare the expected expenditure with the actual expenditure. The resultant realisation ratios (actual expenditure divided by expected expenditure for the same period) assist in interpreting expectation statistics for future periods and can be applied to make predictions of actual expenditure for a future period.

Private new capital expenditure estimates provide one of the key measures of the performance of the Australian economy. The level of investment in private new capital expenditure has a major impact on the future productive capacity of the economy. It can also have a significant affect on GDP.


Further Reading

Private New Capital Expenditure and Expected Expenditure, Australia (5625.0)
Contains quarterly estimates of actual and expected new capital expenditure by type of asset and selected industry. Original, seasonally adjusted and trend estimates are provided in current price and chain volume terms. From March quarter 2002, estimates by state which were formerly contained in ABS cat. no. 5646.0 have also been included.

Directory of Capital Expenditure Data Sources and Related Statistics (5653.0)
Contains details of data sources on capital expenditure and related statistics produced by the ABS and other government agencies.


Previous PageNext Page


Bookmark and Share. Opens in a new window


Commonwealth of Australia 2014

Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.