Resources sector investment hasn’t and won’t fall off cliff

Yesterday’s ABS capital expenditure data show just how significant resources sector investment has been to the Queensland economy over the last few years, and how the manufacturing sector has been affected by the high exchange rate (see chart below).

capexJun13While the forward-looking expected investment data are not encouraging (as covered by MacroBusiness), I agree with Pete Faulkner’s conclusion that CAPEX data confirms the “soft-landing” scenario:

Data released this morning by the ABS shows that private sector capital expenditure (both actual and expected) are not falling off a cliff as the mining boom comes to its natural end. As we noted last quarter (see here), although the slow down in the mining sector is clear it is nowhere near as dramatic as some would have us believe.

Regarding the impact of the resources boom on manufacturing, see my earlier post:

Qld struck by Dutch Disease – manufacturing employment has plunged in last few years

This entry was posted in Macroeconomy, Mining and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s