BUSINESS investment is soaring at its fastest pace in 15 years as cashed-up mining companies splash out on new buildings, infrastructure and equipment.
Official figures reveal that capital expenditure surged 12.3 per cent last quarter -- a pace far exceeding the expectations of economists -- to $37.2 billion.
Economists warned the spending boom was likely to deter the Reserve Bank from cutting the official interest rate next week -- but said a February cut remained a strong probability.
BHP Billiton, Rio Tinto, Chevron and Shell have been chief among those ploughing money into new mines and gas wells to meet demand for raw materials and energy coming from Asia.
Herald Sun
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