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Data centre boom and new planes drive biggest business investment jump in 4 years

Australian businesses lifted spending sharply in the September quarter, signalling confidence in the economic recovery.

28 November 2025

Qantas Airbus A321XLR aircraft taking off

Key takeaways

  • Business investment (capital expenditure) rose 6.4% in Q3 2025 - the strongest quarterly rise since early 2021.
  • Non-mining sectors led the way, with spending up 8.6% and machinery and equipment up 13 per cent.
  • Companies plan to invest $202.8 billion in FY26, a 7.4% lift on last year.

Why did business investment jump?

Australian businesses opened their wallets in the September quarter, lifting investment volumes by 6.4 per cent according to the Australian Bureau of Statistics (ABS), far above expectations of just 0.5 per cent. This marks the biggest quarterly increase in more than four years and points to a stronger economy heading into 2026.

The surge was driven by non-mining industries, where spending jumped 8.6 per cent. Machinery and equipment investment soared 13 per cent, with data centres and air transport leading the charge.

Trimmed mean inflation forecast November 2025

Which sectors stood out?

Information and telecommunications, which includes data centres, recorded a 41 per cent jump in the quarter and 70 per cent over the year. Transport and warehousing also posted strong gains, while professional services and retail lagged.

“This result reinforces the economic recovery underway and shows strong structural demand for sectors like data centres,” said Ashwin Clarke, Senior Economist at CBA.

 “While some of the strength reflects one-off factors such as aircraft deliveries, the upgrade in investment plans suggests businesses are confident.”

How did states perform?

The Australian Capital Territory led the pack with a 35.3 per cent surge in investment, followed by South Australia (8.2 per cent), Queensland (7.3 per cent) and Victoria (6.7 per cent). New South Wales also recorded solid growth, contributing to the national uptick, while Western Australia lagged with just 1.6 per cent, and the Northern Territory slipped 1.6 per cent.

What’s next?

Companies have lifted their investment plans for the next financial year to $202.8 billion - a 7.4 per cent increase on FY25. Non-mining sectors are expected to drive most of this growth, while mining intentions remain relatively modest.

Economists expect overall investment to stay strong, but quarterly growth may ease as temporary factors unwind. Still, structural trends, particularly in technology infrastructure, point to ongoing momentum.

See Ashwin Clarke’s full analysis of the Q3 Capex data here.

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The information presented is an extract of a Global Economic and Markets Research (GEMR) Economic Insights report. GEMR is a business unit of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.



This extract provides only a summary of the named report. Please use the link provided to access the full report, and view all relevant disclosures, analyst certifications and the independence statement.



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