Australian Business Investment Rises 0.4% in Q4, Highest in Over a Decade

Australian business investment rose to its highest level in more than a decade in Q4 2025, driven by large spending in the renewable energy and data centre sectors.

Data released by the Australian Bureau of Statistics (ABS) on Thursday (26/2/2026) showed that private capital expenditure increased by 0.4% on a quarterly basis to A$49.3 billion (US$35.12 billion) in the October–December period.

Spending on buildings and structures jumped 2.3%, mainly supported by investments in battery, wind power, and solar power projects.

In contrast, spending on plants and equipment fell 1.7% after a sharp increase in the previous quarter.

The ABS survey of businesses also showed that investment prospects remained solid.

Companies plan to invest A$199.3 billion in the fiscal year ending September 2026, up 4.3% from previous estimates.

The increase in investment reinforces the signal that the Australian private sector remains expansionary despite facing global challenges, including interest rate uncertainty and economic slowdown in several major trading partners.