According to an ABC report, business investment has fallen by substantially more than economists forecast, but economists say the future outlook is decidedly more positive than they had expected.

The report notes that The Bureau of Statistics number that measures total business investment in new buildings and equipment fell 4.2% in the March quarter compared to the last three months of last year. Economist forecasts had centered on a decline of 1.5%, according to a survey by Bloomberg.

Total new capital expenditures were $37.1 billion at the start of 2014, seasonally adjusted. Investment in new equipment, plant and machinery was up, rising 2.8% to $12.6 billion, but investment in buildings and structures was down 7.4%.

Manufacturers and other industries also increased investment in new plant and equipment over the first quarter of 2014. Looking ahead, it seems likely that business investment this financial year will be similar to the amount of investment last year, even as miners scaled back their spending estimates by $7.2 billion in the latest figures.

To view the full report, click here.