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New capital expenditure



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NO. 151

'STATEMENT BY THE HON JOHN HOWARD, MP, TREASURER .

NEW CAPITAL EXPENDITURE ' .

The statistics released today on new capital expenditure are strong

evidence of the strengthening business confidence that is now under­

way and a further indication of the success of the Government's

economic policies in general and the investment allowance in

particular . 4 . · · - . '■ . . ' -

T h e p r e l i m i n a r y e s t i m a t e of n e w c a p i t a l e x p e n d i t u r e f o r t h e S e p t e m b e r

q u a r t e r 1 9 7 7 is 6 . 6 % h i g h e r t h a n t h e J u n e q u a r t e r 1 9 7 7 e s t i m a t e

a n d t h e f i g u r e f o r t h e l a t e s t y e a r is 1 4 . 5 % h i g h e r t h a n t h e e s t i m a t e

fo r t h e y e a r e n d e d S e p t e m b e r 1976.

It w i l l be r e c a l l e d t h a t o n 21 O c t o b e r the S t a t i s t i c i a n r e l e a s e d

h i s l a t e s t s u r v e y of b u s i n e s s m e n ' s i n v e s t m e n t i n t e n t i o n s s h o w i n g

t h a t t o t a l n e w c a p i t a l e x p e n d i t u r e ( s e a s o n a l l y a d j u s t e d ) w a s ;

e x p e c t e d to be 14% h i g h e r in t h e s e c o n d h a l f of 1 9 7 7 t h a n a c t u a l -

e x p e n d i t u r e in t h e p r e c e d i n g s i x m o n t h s . T h e f i g u r e s r e l e a s e d

t o d a y p r o v i d e t h e f i r s t i n d i c a t i o n of t h e s t r e n g t h of a c t u a l

c a p i t a l e x p e n d i t u r e in t h e c u r r e n t h a l f y e a r .

•As t h e s u r v e y of i n v e s t m e n t i n t e n t i o n s r e v e a l e d , i n v e s t m e n t o u t l a y s

in t h e m i n i n g s e c t o r a r e e x p e c t e d to i n c r e a s e , i n s e a s o n a l l y

a d j u s t e d t e r m s , by 6 6 % in t h e s i x m o n t h s e n d i n g D e c e m b e r a n d n e w

; . ; · . ... . Z. ; '

capital, expenditure in the manufacturing sector is expected to

rise by 33% over the same,period.

It is particularly heartening that in seasonally adjusted terms -

expenditure on buildings and structures shows an increase of 10%

in the September quarter ji-the third successive quarterly rise .

in this hitherto depressed area. ·

Canberra. 28 November 1977. '.··.·

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