The big news next week is the release of private sector business investment data. Since the peak in 2011, business investment has been in free-fall, driven by the end of the mining investment boom. That said, even non-mining investment has been disappointing with zero growth in recent years. As a share of GDP, business investment has fallen from a peak of 19 per cent to 13 per cent and is likely to fall further before finding a floor.
The critical element for policy makers in recent times has been an expected, but yet to materialise, lift in non-mining investment. The data update next week will give clues on whether this is happening or has been kicked down the road a little longer.
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