Mining Investment to Continue Despite Slowdown

While property investment rates remain steady, new capital expenditure figures show there is a lot more investment in mining yet to come. New private capital expenditure rose by 3.4 per cent in the June quarter, matching market expectations, and the ABS’s third estimate of planned expenditure for 2012/13 is 20.8 per cent higher than the corresponding estimate for 2011/12. JP Morgan Australia chief economist Stephen Walters said two-thirds of the planned investment for the current fiscal year is destined for mining, with resources firms planning to spend another $120 billion by June 2013. While he conceded that the sustained rise in commodity prices has probably ended, Mr Walters said that the investment phase of the mining and resources boom would still be a driver for economic growth in 2012 and 2013. “You’re still going to get a lot of negative news,” he commented, “but if you look at the numbers, there is still a lot of spending to be done.”

Source:http://www.theaustralian.com.au/business/breaking-news/investment-data-show-mining-boom-not-over/story-e6frg90f-1226461587853