The Australian Bureau of Statistics released capex data for the three months to March which showed investment had fallen 4.7% quarter-on-quarter when economists had expected a 0.5% jump.

Figures were down 4.4% from the previous corresponding period.

Patersons Securities economist Tony Farnham said whichever way you cut it, the manufacturing sector remained in the doldrums while investors would need to watch the unfolding mining slowdown in coming months.

“This disappointing result was powered by a material drop-off in the ‘buildings and structures’ component where all the industry segments – mining, other selected industries and manufacturing – headed south,” he said.

“The focus over coming quarters will be the extent of the now-unfolding slowdown in mining sector-centric investments and the degree to which services-related capex takes up the slack.”

The Australian dollar fell as low as US95.83c today and was trading at 96.76c this afternoon.

The S&P/ASX 200 index closed in the red, down 0.9% to 4930.7 points while the broader All Ordinaries lost 0.8% to 4917.1 points.

All sectors but consumer goods and utilities finished Thursday with losses. Basic materials was near the bottom of the pack with a 1.2% fall.

St Barbara had a strong day, closing 14.8% higher at A66c.

Majors BHP Billiton and Rio Tinto both dropped, with BHP down 1.2% to $34.46 and Rio down 1.3% to $53.96.

Junior Dragon Mining broke a two-day losing streak with a 22.5% gain to 24.5c.

Blackthorn Resources shed 10.4% to 34.5c after releasing an update on its Perkoa project in Burkina Faso.

After falling more than 20% yesterday, junior United Orogen soared 46.1% to 1.9c today on no news.