SYDNEY, June 1 Reuters Australian business investment rose to a sevenyear high in the first quarter, helped by a jump in spending on mining, manufacturing and transport, while firms affirmed plans for solid spending in the year ahead.

Data from the Australian Bureau of Statistics on Thursday showed private capital spending climbed a real 2.4 in the first quarter from the previous quarter, compared with forecasts ranging from a rise of 1 to 1.9 from big Australian banks.

The A36.1 billion 24.5 billion invested was the highest level since 201539;s December quarter.

Firms also boosted their combined spending plans for the year to June 2024 to A137.6 billion, up 6.4 from an earlier estimate.

Business investment may yet prove to be a bright spot in what looks set to be a gloomy Q1 GDP print, said Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia.

Although expectations for growth have generally weakened over the past three months, firms39; expectations for capex spending in FY24 remain healthy. However, this may be an acceptance of higher cost inflation, rather than an intention to make larger additions to the capital stock.

Firstquarter investment by Australia39;s huge mining sector climbed 1.7, accelerating from a rise of 0.7 in the previous quarter. Spending on new equipment and machinery rose 3.7, marking the largest quarterly growth in two years.

The capital spending figures will feed into data on gross domestic product GDP due next…