SYDNEY, May 27 (Reuters) – Australian business investment jumped by the most in almost a decade in the first quarter as businesses took advantage of tax breaks to buy new machinery, suggesting economic growth could also beat forecasts.
Thursday’s figures from the Australian Bureau of Statistics showed capital expenditure rose a real 6.3% in the March quarter, from the previous quarter, far above market forecasts of a 2.0% increase. Spending on plant and machinery surged 9.1%, while investment in buildings rose 3.8%.
Firms planned to invest A$113.6 billion ($87.78 billion) in the year to June 2022, up from A$105.3 billion in the February report. ($1 = 1.2942 Australian dollars) (Reporting by Wayne Cole; Editing by Jacqueline Wong)
