Capital expenditure dropped by 5.9 per cent in the June quarter,down to $26.1 billion. It has fallen 11.5 per cent over the past year,with capital spending already slipping before the advent of the coronavirus.
Over the past year,capital spending by firms in NSW has crashed by 20 per cent while in Victoria it is down by 18 per cent. Only WA,on the back of the state's iron ore miners,has defied the trend to be up by 8 per cent.
Businesses now expect to spend almost $99 billion on capital goods and buildings through 2020-21,an 11 per cent or $12 billion drop on what was spent last financial year.
A separate business survey by the ABS points to the depth of the planned spending cuts.
It found 23 per cent of businesses had either cut or cancelled their capital expenditure plans compared to three months ago,with uncertainty about the economy and forecast customer demand cited as key reasons.
Two in five firms said revenue had fallen over the past month while 22 per cent said their expenses had increased.
More than a third said they would face difficulties paying their bills over the next three months.