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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.
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.
Private New Capital Expenditure and Expected Expenditure, Australia (5625.0) Directory of Capital Expenditure Data Sources and Related Statistics (5653.0)
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