Australia Capex Surges 6.5% on AI Data Centres as Households Cut Spending

Private capital expenditure jumped 6.5% in Q1, fuelled by an 18.1% surge in plant and machinery spending on data centres, while April household consumption fell 1.1%. The split follows earlier warnings from CBA CEO Matt Comyn on AI-driven workforce restructuring and steep share-price declines at major banks since late February amid a slowing A$2.4 trillion mortgage market. Analysts now forecast 5–10% home-price falls and mortgage growth slowing to 3–4%, with political uncertainty over negative-gearing changes adding to investor caution. The import-heavy capex boost is expected to be offset by higher capital-goods imports, leaving near-term GDP and inflation impacts muted for the RBA.