Australia is in the midst of a capital spending recession. According to new Australian Bureau of Statistics figures, total new capital expenditure fell more than 15 per cent (on a trend and seasonally adjusted basis) over the year to March. Businesses spent A$31.7 billion during the March quarter on new buildings, equipment, plant and machinery. In the same quarter last year they spent $36.8 billion.Based on business surveys, the estimate for total capital spending for the year to June is $126.8 billion, compared with actual spending $150.6 billion in 2014/15.Business spending is not about to get better. The estimate for the 2016/17 financial year is $89.2 billion.Recent capital investment fell in the two key categories. Buildings and structures spending fell more than 18 per cent, while spending on equipment, plant and machinery fell ten per cent. Most of this reduction was in the mining sector.