Capital expenditure rises
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November 29 2012, 12:16AM
Commonwealth Bank associate economist Diana Mousina said the Capex data was positive for the September quarter, but the drop in spending estimates for 2012/13 would be a concern for the RBA.
She said the figures could add to concerns about a rocky transition phase for the Australian economy once the boom in mining investment peaks.
"I guess it shows that spending intentions are not as high as they have been in the past because of project cancellations and deferrals," she said.
"So that is definitely a risk once the mining boom passes through."
Ms Mousina expected the RBA to cut rates either in December or in February.
"It is probably a 50/50 chance of a cut in December and if they don't cut next month we're expecting a cut in February."
The RBA board does not meet in January.