Australia Macro Service > Australia Research Briefings

Investment finally turning a corner

Although total investment declined 1.2% in the last three months of 2017 the outlook has turned decidedly positive. Sharp (and to some extent one-off) downward corrections in residential investment and mining-related engineering construction were responsible for the fall, with all other components reporting robust growth. While further declines in these sectors are anticipated over the next 2 years, we expect these to be more than outweighed by solid increases in public sector investment and non-mining business investment (although the residential downturn will weigh on momentum). Overall, after 4 years of decline, total investment is forecast to increase by 3.9% in FY18 and 0.8% in FY19.

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