Bullish Sign? - Bounced off 200 EMA, page-2620

While WA is going well according to Deloitte and the consumers (this week) are full of confidence Commsec Research report , Deloitte is not so happy about the national picture :

https://www.smh.com.au/national/inf...lowest-level-this-decade-20190203-p50vf4.html

“Infrastructure spending hits lowest level this decade
SHANE WRIGHT FEBRUARY 04, 2019
Infrastructure spending across the country has fallen to its lowest level this decade as a surge in public projects fails to make up for a drop in interest from the private sector in sinking cash into new upgrades.

Figures released on Monday by Deloitte Access Economics show the total value of infrastructure projects, from those already under way to proposals not even at blueprint stage, fell to $679.1 billion by the end of December.


Melbourne's Metro Tunnel project is one of the major public sector investments propping up national spending.Credit:Nell O'Shea

This was a 3.8 per cent drop on the September quarter result and 8.7 per cent, or $64.7 billion, down on the same time in 2017.

Over the past year, the total value of committed projects has dropped by more than 52 per cent while the value of those under construction has slipped by 20 per cent to $244.4 billion.

Deloitte Access partner Stephen Smith said the state of the economy, solid business profits, low borrowing costs and the lift in public infrastructure spending all pointed towards good times for private sector spending.

But it was clear the private sector, led by the nation's miners, was holding back rather than sinking more money into productivity-enhancing projects.

"A number of leading indicators, including the [capital expenditure] survey conducted by the Australian Bureau of Statistics, and the value of building approvals remain relatively subdued," he said.

"There are also doubts about whether the mining sector will be a driver of business investment in the short term.

"Despite the fact that profits have grown by almost 350 per cent in the past two years, investment in new capacity has been weak."

While the overall value of projects being considered or being built fell during the quarter, there were some sizeable cost blowouts that softened the drop.

These included a $700 million increase in the cost of Rio Tinto's Koodaideri iron ore mine as well as a $5 billion lift in a major floating LNG project.


An artist's impression of Sydney's NorthConnex project. Image supplied.Credit:

NSW continues to lead the way among the states and territories, with investment up 9.7 per cent to $153.5 billion over the past year.

But Deloitte cautioned that this year would probably be the peak for NSW, with one-off factors, including the drying up of proceeds from privatisation to fund new infrastructure, likely to weigh down spending in 2020 and beyond.

This includes the completion of major projects under way, among them the $3 billion NorthConnex and $2.1 billion Sydney CBD light rail.

Victoria has enjoyed the biggest lift in spending over the past year, up by 29.2 per cent to $103.5 billion.

The value of work done in Victoria has been growing for the past two years, with signs that building approvals remain elevated, pointing to more investment in the offices, education and accommodation areas.

It's a different story in Western Australia, where investment has dropped by 22 per cent over the past 12 months to $122.3 billion.

While the mining sector has signalled some new projects, Deloitte's Mr Smith noted that most of these were to maintain production capacity at existing levels rather than to boost production as occurred during the mining boom.

In 2012-13, Queensland, WA and the Northern Territory accounted for more than two-thirds of definite investment across the country. They now account for less than a quarter, with half of all projects now under way in either NSW or Victoria.”