Equipment, plant and machinery investments key drivers in Victoria’s growth

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Investor confidence in Victoria’s economy remains strong with private capital expenditure up 8.6 per cent over the year to June, compared with a national fall of 3.0 per cent during the same period.

The latest data from the Australia Bureau of Statistics (ABS) released today shows Buildings and Structures capital investment in Victoria grew by 22.1 per cent – the highest of all states – and well above the national average decline of 5.1 per cent.

The data also showed total Victorian capital expenditure grew 2.5 per cent in the June quarter to $5.3 billion –  and 8.6 per cent for the year – the second highest growth of all the states.

During the quarter, growth was driven by Equipment, Plant and Machinery capital investment (up 3.6 per cent) and Buildings and Structures capital investment (up 1.1 per cent).

Today’s statistics follow yesterday’s ABS data which showed building approvals and construction work completed in the past 12 months were continuing their upward trend.

The total value of building approvals increased by 3.3 per cent to $3.29 billion in July 2017, and was up more than 20 per cent over the year.

Victoria’s employment rate continues to lead the nation with almost a quarter of a million jobs created in Victoria – the majority of which are full time – since November 2014.

Treasurer Tim Pallas said, “These results are a direct reflection of the strong confidence in the Victorian economy. Our employment rate is the best in the nation; our infrastructure, health and education investment is at record levels.

“Victoria’s economy is attracting investment because business has confidence in the Andrews Labor Government’s strong economic management.”