FX.co ★ Australian Plant and Machinery Capex Swings from Strong Growth to Sharp Contraction in Q2 2026

Australia’s plant and machinery capital expenditure recorded a sharp reversal in the second quarter of 2026, falling by 8.9% quarter-on-quarter after an 18.1% surge in the first quarter of the year.

Data updated on 27 August 2026 show that the robust expansion seen in Q1 2026, when plant and machinery spending jumped 18.1% from the previous quarter, has given way to a marked pullback in Q2. On a quarter-over-quarter basis, the latest figure highlights a significant loss of momentum in business investment.

The comparison underscores the volatility in Australia’s capital spending profile in early 2026: while the previous reading reflected strong investment growth into the start of the year, the current quarter’s contraction points to a more cautious stance by firms toward new plant and machinery outlays.