Fed: Modest rise in business investment

AAP General News (Australia)
12-06-2000
Fed: Modest rise in business investment

CANBERRA, Dec 6 AAP - Business investment rose modestly in the September quarter, with
investment in equipment, plant and machinery up strongly, while spending on buildings
plummeted.

The Australian Bureau of Statistics (ABS) said investment on equipment, plant and machinery
rose 5.4 per cent, seasonally adjusted, in the September quarter.

That more than reverses the fall in the June quarter, although spending in this area
is still up only 3.0 per cent for the year.

However, spending on buildings and structures plummeted 12.4 per cent in the September quarter.

Investment in this area is now down 17.7 per cent for the year.

While total business investment was up 0.6 per cent for the quarter, it is still down
2.8 per cent on September last year.

However, expectations are improving, with forecasts for business investment for this
financial year up 1.3 per cent on the same time last year.

Again, the extra investment is going into equipment plant and machinery with expectations
up 4.7 per cent, while forecast spending for buildings and structures are down 7.2 per
cent.

AAP ss/daw/was/br

KEYWORD: INVESTMENT

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