The printing industry increase was 9.9 per cent during the September 2004 quarter. New capital expenditure for all industries in trend terms increased by two per cent during the same period and by 5.7 per cent during the 12 months to September 2004.
In seasonally adjusted terms, the increases for all industries were 1.3 per cent for the quarter and 4.8 per cent for the 12 months to September 2004.
The data shows larger increases were reported by all industries for buildings and structures as opposed to equipment, plant and machinery.
In trend terms investment in equipment, plant and machinery was reported to have increased by 1.6 per cent during the quarter and by 3.1 per cent for the year to September 2004.
Expectations by all industries for the remainder of the financial year remain strong projecting a continuation of growth.
The September 2004 quarter is the 14th consecutive quarter increase in total private new capital expenditure reported by all industries. Despite this positive trend, the rate of growth has slowed significantly since December 2002 quarter.
The rate of growth has also been quite low in recent quarters for equipment, plant and machinery. When measured in trend current prices terms, the increase for all industries was 1.7 per cent during the quarter and 1.1 per cent for the 12 months to September 2004.
The printing industry increase in total capital expenditure rose from $142m in the June 2004 quarter to $156m in the September 2004 quarter.
Over the past 12 months to the September 2004 quarter, total printing industry private new capital expenditure increased from $98 million during the September 2003 quarter to $156m during the September 2004 quarter – an increase of 59.2 per cent.
Hagop Tchamkertenian, Printing Industries Association of Australia manager of Industry and Commercial Policy, says the reported increased capital expenditure by the industry may be due to the post-Drupa effect with companies deciding to invest in new plant and equipment.
In recent times a number of industry companies have also made strategic decisions to invest in new technology as a way of improving efficiencies and competitiveness.
The ABS capital expenditure data is broadly consistent with the findings of the Printing Industry Trends Report, which also reported increased capital expenditure during the September 2004 quarter with strong expectations for the December 2004 and March 2005 quarters.
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