26.02.202600:58:59UTC+00Australia Q4 Capital Spending Unexpectedly Grows

Total new capital expenditure in Australia rose by 0.4% quarter-on-quarter in Q4 2025, a sharp slowdown from the 6.4% increase recorded in Q3 but still outperforming market expectations for no growth. Investment in buildings and structures continued to expand at a solid pace (2.3%, unchanged from Q3), supported by large-scale projects in the utilities; rental, hiring and real estate; and information and telecommunications sectors. Within this category, non-mining capital expenditure advanced 3.7%, while mining-related investment slipped 0.2%.

In contrast, spending on equipment, plant and machinery declined 1.7%, reversing the strong 11.2% surge seen in Q3. Non-mining equipment investment increased by 0.8%, but this was more than offset by a 0.8% fall in mining equipment spending.

By region, capital spending rose in Victoria (2.0%), Queensland (0.7%), South Australia (4.8%), Western Australia (3.9%) and the Northern Territory (1.9%). Investment was unchanged in Tasmania, but registered a sharp decline in the Australian Capital Territory (-14.3%).

On an annual basis, private capital expenditure grew 7.8%, accelerating from a 6.9% increase in Q3.