Easing supply-chain disruptions and the critical minerals boom have helped Australian business investment grow by 2.8 per cent in the three months to June, coming in higher than expectations.
Consensus estimates had a more modest 0.7 per cent improvement pencilled in for the June quarter.
Compared with a year ago, private capital expenditure as measured by the Australian Bureau of Statistics (ABS) was 10.8 per cent higher.
ABS head of new capital expenditure statistics Robert Ewing said the improvement was driven by investment in both new equipment and machinery, as well as buildings and structures.
"Increased investment in equipment and machinery reflects a further easing of supply-chain disruptions, with the availability of vehicles improving significantly during the quarter," Mr Ewing said.
He also said some businesses brought their investment plans forward ahead of the end of the temporary full expensing tax incentive on June 30.
“The increase in investment in buildings and structures was boosted by a number of mining projects for resources such as lithium used in batteries, and the commencement of some previously delayed projects in non-mining industries,” Mr Ewing said.
Investment in new equipment and machinery, which will feed into the national accounts figures next week, grew 1.9 per cent over the quarter.
Building and structures investment rose 3.5 per cent over the three months.
Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said the result would provide some momentum for economic growth in the quarter.
"Business investment looks set to have been a bright spot in an otherwise challenging quarter for the economy, with consumer activity slowing under the strain of rising interest rates," he said.
