Boom time conditions have arrived. Average weekly earnings have increased strongly by 1.1% in the fourth quarter, up from 0.4% in Q3, which was also revised up to 0.6%. This is consistent with yesterday's worrying wage data. More amazingly, capex intentions for 2010/11 have not been downgraded--there is a slight upgrade, while capex in 2012/13 is expected to grow by a remarkable 30%. Here is Dow Jones:
"Investment in equipment, plant and machinery rose 6.1% in the fourth quarter from the third. A fifth estimate of expenditure shows companies expect to invest A$128.93 billion in the fiscal year ending June 30, 2010, a rise of 16.2% from the fifth estimate for 2008-09. The first estimate for 2011-12 is A$132.72 billion, up 30.3% from the corresponding estimate for 2010-11. The bureau surveys companies each quarter on their actual business investment and investment plans. It makes seven estimates of spending plans for each fiscal year, beginning six months before the year begins. The bureau also said that the trend estimate of capital expenditure rose 3.5% to A$29.79 billion in the fourth quarter from the third."
