SYDNEY, Aug 31 Reuters Australian business investment climbed to its highest since late 2015 in the June quarter as firms took advantage of tax breaks to splurge on new equipment, while plans for future spending were also upgraded in a muchneeded boost to the economy.

Data from the Australian Bureau of Statistics on Thursday showed private capital spending climbed a real 2.8 in the second quarter from the previous quarter, handily beating forecasts of a 1.2 increase.

Spending of A37.58 billion 24.43 billion was the highest since late 2015, while investment in equipment reached a record peak of A17.53 billion.

The construction sector boasted the biggest gains as firms finally received deliveries of machinery and vehicles after lengthy supplychain delays.

Firms also lifted spending plans for the fiscal year to June 2024 to A157.8 billion, up 14.5 on the previous quarter.

The strength in investment is a welcome shot in the arm to economic growth given rising interest rates and painfully high inflation has taken a heavy toll on consumer spending.

Figures for gross domestic product GDP for the June quarter are due next week and analysts are tipping growth of only around 0.3. That would see the annual pace slow to just 1.8, the lowest since early 2021 when the economy was emerging from pandemic lockdowns.

Indeed, an extended period of subpar growth lies ahead as the Reserve Bank of Australia RBA tries to curb inflation with interest rates at decade highs of 4.1….