Main Points:
- Total new capital expenditure rose by 6.3%
- Buildings and structures rose by 3.8%
- Equipment, plant and machinery rose by 9.1%
- Estimate 2 for 2021-22 is $113,635m. This is 7.9% higher than Estimate 1 for 2021-22
Update to seasonal adjustment methods
New Capital Expenditure uses the concurrent seasonal adjustment method, meaning that seasonal factors are re-estimated each time a new data point becomes available. If not appropriately accounted for, unusual real-world events such as COVID-19 can distort estimates calculated using this method.
From September quarter 2020 for selected series, seasonal factors were calculated using data up to and including March quarter 2020, then projected from June quarter 2020 onwards. This approach, known as the forward factor method, ensures that the seasonal factors are not distorted for industries affected by COVID-19 impacts. Switching to the forward factor method may result in revisions in seasonal data for future quarters when the concurrent seasonal adjustment method is reinstated.
Suspension of trend series
The trend series attempts to measure underlying behaviour in business activity. In the short term, this measurement will be significantly affected by changes to regular patterns in spending that will occur during this time, as certain businesses are restricted from trading for example. If the trend estimates in this publication were to be calculated without fully accounting for this irregular event, they would likely provide a misleading view of underlying business activity.
It may be some time before the underlying trend in business activity can be accurately estimated. The New Capital Expenditure trend series have therefore been suspended and will be reinstated when more certainty emerges in the underlying trend in business activity.
