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Correction: Private New Capital Expenditure in Australia Falls Nearly 4% in June Quarter

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(Corrects currency amounts to billions in the first, fourth, and fifth paragraphs)

Private new capital expenditure in Australia fell 3.6% in the June quarter in seasonally adjusted terms to nearly AU$51 billion, according to a report released by the Australian Bureau of Statistics (ABS) on Thursday.

June experienced a decline in investment due to a 53% reduction in spending on information media and telecommunications equipment, following a near 200% increase in investment in server racks and processing equipment for data centers last quarter, said Tom Lay, ABS head of business statistics.

Total capital expenditure remains 10.7% higher than last year despite the quarterly fall.

Buildings and structures investment rose 2.1% in June to AU$25.8 billion, with continued activity on data center construction to expand capacity, as well as the start of new renewable energy projects, Lay added.

Meanwhile, equipment, plant and machinery investment declined 8.9% to AU$25.1 billion, driven by an over 11% fall in non-mining equipment and machinery, per the report.

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