Capex disappointing, not unexpected:Hockey

Treasurer Joe Hockey concedes the latest capital expenditure figures are disappointing even though they were expected, given the drop in commodity prices and associated investment by business.

New data on Thursday showed business investment fell by a further 4.4 per cent in the March quarter, almost double the decline forecast by economists.

Mr Hockey told parliament the figures precede the May interest rate cut by the Reserve Bank and the budget, which included a $20,000 asset write-off, and which the treasurer believes is going to make a difference to the "procurement of capital" by small business.