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29 Aug 2013
Flash: Capex enough reason to limit AUD upside - NAB
FXstreet.com (Barcelona) - According to NAB Economists, the 4.0% Q2 capex was well above expectations and could see Q2 GDP estimates revised higher.
However, the new estimate for 2013-14 capex was projected at $159bn vs $156.5bn in Q1, which in view of NAB, "represents a downward revision relative to what we would have expected based on typical differences this (3rd) estimate and previous (2nd) estimate."
NAB adds: "Also this number is still slightly below the 2012 actual, so implies investment is not expected to add anything to growth this year. More analysis needed from the economics brains trust before we can say this with more confidence, but it looks like good enough reason to not get too excited (A$ up) bout the headline Q2 capex number."
However, the new estimate for 2013-14 capex was projected at $159bn vs $156.5bn in Q1, which in view of NAB, "represents a downward revision relative to what we would have expected based on typical differences this (3rd) estimate and previous (2nd) estimate."
NAB adds: "Also this number is still slightly below the 2012 actual, so implies investment is not expected to add anything to growth this year. More analysis needed from the economics brains trust before we can say this with more confidence, but it looks like good enough reason to not get too excited (A$ up) bout the headline Q2 capex number."