Private investment surge

Submitted 28/02/2011

www.southaustralia.biz

 

Investment spending by South Australia's private sector is at an all-time high, according to the latest report from the Australian Bureau of Statistics.

Treasurer Jack Snelling says the ABS Private New Capital Expenditure Report showed spending rose by 27 per cent seasonally adjusted in the December 2010 quarter.

"This is compared to a 1.3 per cent rise nationwide and it shows there is improving confidence among the South Australian private sector," Mr Snelling says.

"It is largely driven by a significant increase in investment in both mining and manufacturing and complements the infrastructure investment the South Australia Government is making."

Mr Snelling says not only is private investment at its highest ever level in the December quarter, business investment is expected to remain strong.

"Investment expectations over the next 12 months are 21 per cent higher than the same time a year earlier, meaning South Australian businesses are optimistic for the year ahead," he says.

"According to the latest Access Economics Investment Monitor Report the value of investment projects under consideration in South Australia now totals $32 billion, including the proposed Olympic Dam expansion."

Mr Snelling says that growth in South Australia's real private new capital expenditure over 2010 was 17.9 per cent, the highest in the country and more than three times the national figure.