Jefferies has highlighted key trends in the central government’s capital expenditure (capex) trajectory, noting a mixed picture across sectors in the latest update. According to the brokerage, central government capex fell 10% year-on-year in July 2025, though on a year-to-date (YTD) basis, spending remains strong with a 33% YoY rise, well above the budget estimate (BE) of 7% growth.
The brokerage flagged that investors should track capex excluding telecom and the Department of Economic Affairs (DEA), which is also recording a robust 26% YoY increase YTD compared to a 6% BE growth. Within specific segments, Jefferies pointed out that railways and defence capex are running ahead of FY26 budget estimates, while road capex is lagging behind.
The firm added that the government’s intent on sustaining capex spending momentum will be closely watched by markets, particularly for industrial stocks that are sensitive to infrastructure outlays.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerage and do not represent investment advice.
