Businesses have pushed spending plans out, with Australian companies cutting investment in the June quarter as factors such as softness in consumer spending, uncertainty on the mining tax and the mixed outlook for
the global economy affect investment decisions, the Commonwealth Bank reports.

However, spending plans for the current financial year appear healthy, according to the bank's economics arm, CommSec.

According to Australian Bureau of Statistics figures, private business spending fell 4% in the June quarter when economists had tipped a rise of 4%.

"Spending on buildings fell by 3.9% while spending on equipment fell 4.1%," says CommSec economist, Savanth Sebastian in the latest bulletin.

"The third estimate for investment in 2010-11 stands at $123.334 billion, up 24.3% on the equivalent estimate made for the 2009-10 year and the most positive reading in three years.

"Mining dominates investment plans for the coming year with the sector to account for over 45% of all planned investment spending.

"This looks like a short-term blip. Economists had expected investment to end the financial year on a positive note, but it hasn’t turned out that way.

"But it does just look like an aberration given the positive investment views for the current financial year. The softness in consumer spending, the proposed mining tax and soggy outlook for the global economy seem to be the culprits behind the June quarter investment downturn.

"The figures suggest investment has merely been delayed, not cancelled."