Australia Macro Service > Australia Research Briefings

The Evolution of Non-mining Business Investment

Underpinned by robust growth in the global economy and an improving domestic demand environment, non-mining business investment has surprised to the upside over the past year. Moving into 2019, the survey indicators remain positive and many sectors are now approaching full capacity; we expect non-mining business investment to grow by 6.6% in FY 19, significantly faster than the broader economy.

Although the near-term outlook is very positive, over the longer term we expect to see structurally weaker growth in non-mining capital expenditure. The industry composition of the economy has shifted toward less investment-intensive sectors, but more importantly, firms across all non-mining sectors are investing less than in the past. 

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