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Cycles in Non-mining Business Investment

Author

Listed:
  • Stephen Elias

    (Reserve Bank of Australia)

  • Craig Evans

    (Reserve Bank of Australia)

Abstract

Growth in private non-mining business investment has been quite subdued over the past few years relative to the cyclical upswings seen in the 1980s and 1990s. Part of this weakness can be explained by cyclical factors that affect investment – such as a more moderate pace of growth in the output of, and demand for, non-mining goods and services. Further, the increasing importance of sectors of the economy that require less physical capital is likely to have weighed on non-mining investment in recent years. Nonetheless, non-mining investment is expected to pick up over time, supported by a gradual increase in the growth of domestic demand and accommodative monetary conditions.

Suggested Citation

  • Stephen Elias & Craig Evans, 2014. "Cycles in Non-mining Business Investment," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 01-06, December.
    • Handle: RePEc:rba:rbabul:dec2014-01
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2014/dec/pdf/bu-1214-1.pdf
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    References listed on IDEAS

    as
    1. Harding, Don & Pagan, Adrian, 2002. "Dissecting the cycle: a methodological investigation," Journal of Monetary Economics, Elsevier, vol. 49(2), pages 365-381, March.
    2. Filardo, Andrew J, 1994. "Business-Cycle Phases and Their Transitional Dynamics," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(3), pages 299-308, July.
    3. Chang-Jin Kim & Charles R. Nelson, 1999. "State-Space Models with Regime Switching: Classical and Gibbs-Sampling Approaches with Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262112388, December.
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    Cited by:

    1. Angus Moore, 2017. "Measuring Economic Uncertainty and Its Effects," The Economic Record, The Economic Society of Australia, vol. 93(303), pages 550-575, December.
    2. Thomas Carr & Kate Fernandes & Tom Rosewall, 2017. "The Recent Economic Performance of the States," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 1-12, March.

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