Construction Work Done for the March quarter of 2017, a miss on expectations with a fall of 0.7% q/q

  • expected -0.5%, prior revised to +0.6% from -0.2% (one for the history buffs)

In a nutshell, this does not auger well for Q1 GDP (data due 7th June).

  • A bigger than expected drop for this data point will weigh
  • As will weak consumer spending

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You can see the 'capex cliff' in the 'Engineering Construction' line above (on the left)

Key points from the Australian Bureau of Statistics:

TOTAL CONSTRUCTION

  • The trend estimate for total construction work done fell 0.6% in the March quarter 2017.
  • The seasonally adjusted estimate for total construction work done fell 0.7% to $46,416.9m in the March quarter.

BUILDING WORK DONE

  • The trend estimate for total building work done fell 1.1% in the March quarter.
  • The trend estimate for non-residential building work was flat and residential building work fell 1.7%.
  • The seasonally adjusted estimate of total building work done fell 2.8% to $26,227.2m in the March quarter.

ENGINEERING WORK DONE

  • The trend estimate for engineering work done rose 0.1% in the March quarter.
  • The seasonally adjusted estimate for engineering work done rose 2.2% to $20,189.7m in the March quarter.

more to come

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Preliminary statistics for the value of construction work done in Australia.

  • Separate data is shown for building work done and for engineering work done for both the private and public sectors.
  • The building work done data is further dissected into new residential, alterations and additions to residential and non-residential work.
  • This is the major source of data used to compile the national accounts estimates for private gross fixed capital formation on dwellings, and other buildings and structures.