Capital expenditure figures point to a strong economy boosted by the mining sector, economists say.
New private capital expenditure rose 12.3 per cent in real terms, seasonally adjusted, in the September quarter, the Australian Bureau of Statistics (ABS) said.
The median market forecast was for a rise of 8.0 per cent in the September quarter.
The fourth estimate of expenditure for 2011/12 is $158.032 billion, which is 26.9 per cent higher than the fourth estimate for 2010/11.
Estimates are gathered in a series of seven quarterly surveys, the first in January and February before the start of the financial year in July, and the seventh immediately after the financial year ends.
Commsec chief economist Craig James said the figure appeared to reflect strong prospects bolstered by the mining industry.
"It's still very much dominated by the mining sector," he said.
"It clearly shows that the Australian economy hasn't ground to a halt, that there is, certainly, strength happening.
"Clearly, this is a reflection of strong overseas demand and good profitability here domestically. You need to have both those. And, they are driving investment levels higher."
However, the rise was not likely to be the main influence on the Reserve Bank of Australia in its cash rate decision next month, said Mr James.
"I think the interest rate equation is still very much dependent on what's happening in Europe," he said.
"For the moment, we've had some sign of stabilisation. Markets seem to be settling. But we don't know how long this is going to last.
"Our view is that the Reserve Bank will cut rates, but probably not until February."
In November, the central bank cut the cash rate to 4.5 per cent from 4.75 per cent.
