The headline data in today’s capex survey was disappointing, for both the QIV outcome and for the (more important)expectations component. Looking through the headline numbers, the component data suggests that the mining capexdecline will proceed broadly in line with the RBA’s expectations. The weakness in the investment outlook is concentratedin lower-than-expected non-mining capex plans. The mining to non-mining growth transition over the next year is likely tobe patchy, which suggests that sub-trend growth and softness in the labour market will continue over the near-term.
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Commonwealth Bank