The data due today is a input into GDP so will be watched
It may not have much of an immediate FX impact (watch for surprises)
- expected -0.5%, prior -0.2%
A couple of previews:
ANZ:
- ANZ expects construction to post the first quarterly rise in nearly two years, in the first quarter of 2017.
- Privately funded work is expected to ease slightly as the drag from the mining sector continues (albeit at a slowing rate),while we believe that we are around the peak in housing construction.
- On the other hand, the public sector is set to post solid growth, with strong engineering activity coming through in the road and telecommunications sectors in particular
- ANZ expect +03% q/q
Westpac:
- Construction activity weakened over the past three years as the downturn in private infrastructure (centred on mining)outweighed gains elsewhere
- In 2016, construction work fell by 7.8%, although the rate of decline moderated in Q4, to a fall of only 0.2%. For March2017, we anticipate another small fall, of -0.2%, mindful that wet weather in the month of March was a constraint
- Public works (20% of the total) should be a positive, led by transport projects, increasing by a forecast 3%
- Private infrastructure (25% of the total) is expected to report a solid (but not rapid) fall, as work on gas projects winds down
- Private building activity advances by a forecast 0.6%, with gains for both residential and non-residential.
- WPAC forecast is for -0.2% q/q
