New private capital expenditure has increased by a larger than expected amount during the third quarter, according to the latest figures from the Australian Bureau of Statistics.
The ABS stats show CAPEX rose by 2.8% in real terms, seasonally adjusted, to $42.475 billion in the September quarter.
The median forecast was for a rise of just 2%. The fourth quarter estimate for 2012-13 is for $173 billion, which is 4.9% higher than the corresponding estimate for 2011-12.
New home sales increase after extended losses
New home sales rose in October, according to the latest figures from the Housing Industry Association.
The HIA new home sales report shows home sales rose by 3.4% in October, following a fall of 3.7% in September, 5.3% in August and 5.6% in July.
The improvement comes after interest rate cuts and a sustained uptick in auction clearance rates, indicating a higher rate of positive sentiment in the construction market.
And while HIA economist Harley Dale says he’s confident of a recovery, he says the market will still take time.
“We need to see evidence emerge in coming months of a stronger, broader based recovery for new home building,” Dale said.
“The fact we don’t have that evidence now is precisely why the Reserve Bank of Australia should cut interest rates next Tuesday.”
“Further action on rates next week would bolster the chances that we see a sustained recovery in new home building in 2013.”
Shares rise after strong US lead
The Australian sharemarket has opened higher this morning, following a sustained lead from the United States where investors are growing more confident of a debt deal being struck between the president and congressional republicans.
The benchmark S&P/ASX200 index was up 19 points or 0.4% to 4,466.5 at 12.00 AEST, while the Dow Jones Industrial Average rose 107 points or 0.8% to 12,985.1
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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