5625.0 - Private New Capital Expenditure and Expected Expenditure, Australia, Jun 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 30/08/2007   
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ACTUAL AND EXPECTED NEW CAPITAL EXPENDITURE


FINANCIAL YEARS AT CURRENT PRICES

The graphs below show the seven estimates of actual and expected expenditure for each financial year. The estimates appearing below relate to data contained in tables 5 and 6. Advice about the application of realisation ratios to these estimates is in paragraphs 25 to 28 of the Explanatory Notes.


The timing and construction of these estimates are as follows:

Graph: Composition of Estimate



TOTAL CAPITAL EXPENDITURE

Estimate 7, recorded at $77,341m for 2006-07 is 6.5% higher than the corresponding estimate for the previous year. This increase comes through the buildings and structures asset class which rose by 17.6%, while equipment, plant and machinery fell by 1.0% between the two estimates. Mining showed strong growth by increasing 18.6% as did Other selected industries which rose 8.8%. A fall in Manufacturing of 14.0% tempered these rises.


Estimate 7 is 1.3% lower than Estimate 6 for 2006-07 with building and structures falling 5.2% compared to a small rise of 2.1% in the equipment, plant and machinery asset class. Estimate 3 for 2007-2008 is $79,166m. This is an increase of 24.4% from the previous estimate 3 in 2006-07. The main driver for this rise is from the building and structures asset class which rose 41.3%. There has been an increase of 11.5% between estimate 3 and estimate 2 in 2007-08. Both building and structures (7.9%) and equipment, plant and machinery (15.7%) have experienced strong growth between these estimates.

Graph: Total Capital Expenditure



BUILDING AND STRUCTURES

Estimate 7 for 2006-07 is at $34,176m. This is a rise of 17.6% from the same estimate in 2005-06. Mining (24.1%) and Other selected industries (25.8%) recorded strong upwards movements while Manufacturing fell by 17.6%.


Estimate 3 for 2007-08 at $41,129m has risen by 41.3% when compared to estimate 3 in 2006-07. Mining has risen by 64.9% and Other selected industries by 38.7% between these estimates while Manufacturing fell by 24.3%. Estimate 3 has risen by 7.9% when compared to Estimate 2. The growth in these estimates was broadly based with increased estimates in all publication industries.

Graph: Building and Structures



EQUIPMENT, PLANT AND MACHINERY

Estimate 7 for 2006-07 was relatively unchanged (-1.0%) from the previous financial year which remains the historical high for Estimate 7. Estimate 7 for 2006-07 is $43,165m. In comparison to Estimate 6 there has been a small increase of 2.1%.


Estimate 3 is 10.2% higher in 2007-08 than it was in the previous year at $38,037m. The major contributor to this increase came from the Mining industry which rose by 28.1%. Estimate 3 is 15.7% higher than Estimate 2. This has been driven across all industries with Other selected industries (17.9%), Mining (15.6%) and Manufacturing (10.3%) all recording sizeable gains.

Graph: Equipment, Plant and Machinery



MINING

Estimate 7 for 2006-07 was recorded at $22,062m and is 18.6% higher than the corresponding estimate in 2005-06. There has been growth across both asset classes with building and structures rising 24.1% and equipment, plant and machinery 5.6%. Estimate 7 is 5.7% lower than estimate 6 this quarter. This decline resulted from a decrease in both asset types with building 7.5% lower and equipment 0.3% lower.


Estimate 3 for 2007-08 is $28,203m which is 54.5% higher than estimate 3 of the previous year. The building and structures asset class has risen 28.1% while equipment, plant and machinery has risen 64.9%. The equipment, plant and machinery asset class rose 15.6% to drive the movement between estimate 3 and estimate 2 of 4.6%. Building and structures rose 1.6% between these two estimates.

Graph: Mining



MANUFACTURING

Estimate 7 for 2006-07 at $13,267m is 14.0% lower than the corresponding estimate in 2005-06. This decline has been seen in both equipment, plant and machinery (-12.3%) and building and structures (-17.6%). Estimate 7 has fallen by 3.3% from estimate 6 with both building and structures (-3.3%) and equipment, plant and machinery (-3.2%) recording similar declines.


Estimate 3 at $11,627m is 6.8% lower than the corresponding estimate for 2005-06, the small rise in equipment, plant and machinery of 2.2% was more than offset by the fall in the building and structures asset class of 24.3%. Estimate 3 is 13.8% higher than the estimate 2.

Graph: Manufacturing



OTHER SELECTED INDUSTRIES

Telstra has been included in these data since the March quarter 2007. Estimate 7 has risen 8.8% compared with estimate 7 for 2005-06. The growth is a result mainly through increases in expenditure in the building asset class (25.8%) while equipment had a more modest rise of 2.0%. Estimate 7 has risen a relatively small 1.9% from estimate 6 with the larger contribution coming from equipment (4.5%).

Graph: Other Selected Industries