The total capital expenditure on new assets for Q1 2024 was R83 158 million, a 12.4% decrease from Q4 2023.
Capital Expenditure Overview
The latest data indicates a significant decline in quarterly capital expenditure (QCE). For the quarter ending March 2024, the total QCE on new assets was R83 158 million. This represents a 12.4% drop compared to R94 931 million in the previous quarter.
| Category | Q1 2024 (R million) | Q4 2023 (R million) | % Change |
|---|---|---|---|
| Total QCE on New Assets | 83 158 | 94 931 | -12.4% |
| ‘Other’ Assets | -27.6% | ||
| Buildings and Improvements | -21.7% | ||
| Computer Software | -13.6% | ||
| Plant, Machinery and Equipment | -11.8% | ||
| Construction Works | -9.8% | ||
| Vehicles and Other Transport Equip. | -6.7% | ||
| Computer and IT Equipment | +4.4% |
Sector Analysis
Decreases were widespread across multiple sectors between Q4 2023 and Q1 2024. The largest drop was in the ‘other’ assets category, down 27.6%. Buildings and improvements followed with a 21.7% decrease. Computer software fell by 13.6%, and plant, machinery, and equipment saw an 11.8% reduction. Construction works decreased by 9.8%, and vehicles and other transport equipment dropped by 6.7%. The only sector to see an increase was computer and IT equipment, which rose by 4.4%.
Year-on-Year Comparison
On a year-on-year basis, total capital expenditure on new assets increased by 2.8%. The largest annual growth was in construction works, which surged by 123.2%. Computer and IT equipment also saw a substantial rise, up by 32.0%. Computer software grew by 1.9%, and plant, machinery, and equipment increased by 1.5%. However, there were significant declines in other areas. Buildings and improvements fell by 23.5%, vehicles and other transport equipment dropped by 16.5%, and ‘other’ assets decreased by 2.8%.
| Category | Q1 2024 (R million) | Q1 2023 (R million) | % Change |
|---|---|---|---|
| Total QCE on New Assets | 83 158 | +2.8% | |
| Construction Works | +123.2% | ||
| Computer and IT Equipment | +32.0% | ||
| Computer Software | +1.9% | ||
| Plant, Machinery and Equipment | +1.5% | ||
| Buildings and Improvements | -23.5% | ||
| Vehicles and Other Transport Equip. | -16.5% | ||
| ‘Other’ Assets | -2.8% |
Sector Contributions
Plant, machinery, and equipment were the largest contributors to total capital expenditure in Q1 2024, making up 62.4% of the total. This was followed by vehicles and other transport equipment at 10.3%. Construction works contributed 8.1%, while ‘other’ assets accounted for 6.3%. Buildings and improvements made up 5.6%, computer and IT equipment 4.8%, and computer software 2.5%.
| Category | Contribution to Q1 2024 | Contribution to Q4 2023 |
|---|---|---|
| Plant, Machinery and Equipment | 62.4% | 62.0% |
| Vehicles and Other Transport Equip. | 10.3% | 9.7% |
| Construction Works | 8.1% | 7.9% |
| ‘Other’ Assets | 6.3% | 7.6% |
| Buildings and Improvements | 5.6% | 6.2% |
| Computer and IT Equipment | 4.8% | 4.0% |
| Computer Software | 2.5% | 2.5% |
Conclusion
The data for Q1 2024 shows a notable decline in capital expenditure on new assets compared to Q4 2023. However, there is a positive year-on-year growth. The biggest annual gains were seen in construction works and computer and IT equipment. Despite the quarterly decrease, plant, machinery, and equipment remain the dominant categories for capital expenditure.