Australian capital expenditures slump over 9 percent in Sept. quarter

The Australian dollar has fallen on official capital expenditure figures that were far below market expectations, likely impacting on Australia's GDP.

Capital expenditure fell 9.2 percent in the September quarter (seasonally adjusted), according to figures released by the Australian Bureau of Statistics (ABS) on Thursday, for an annual fall of 20.0 percent as the mining downturn bites.

The closely watched figures that cover business investment in capital goods, including buildings and equipment were far worse than market expectations of a 2.9 percent drop.

The Australian dollar was trading at 72.26 U.S. cents at 1136 AEDT, down from 72.59 US cents just before the data was released.

However, the part of the survey most relevant to movements in central bank monetary policy show business expect to collectively invest 120.4 billion Australian dollars in the 2015/16 financial year.

While expected expenditure reduced by 20.9 percent than the corresponding period, it's up 4 percent on ABS's last survey, indicating the transition away from mining-led growth is starting.

"While stronger than we expected, it's still not a strong report," CommSec currency strategist Joseph Capurso said.

The soft CAPEX figures will likely offset trade gains in Australia's GDP, AMP Capital chief economist Shane Oliver said, warning it wont be as strong when official figures are released early December.

"Conditions are in place for non-mining investment to pick up -- but still yet to see," Oliver said.

"More help for the economy is likely required."

At 1220 local time (AEDT), the Australian dollar was trading at 72.22 U.S. cents. Endit