Australia data preview - Public demand (key growth driver & GDP input)

As we've just seen from Moody's, yes public investment is a big deal, and getting bigger, in

Australia

• Moody's sees sustained elevated debt levels for Australia in the next 4 years

But, Moody's looking forward, and the data we get Tuesday (6 March) is backward looking, for the fourth quarter of 2017

• Due at 0030 GMT
• Another input to the GDP, due the following day

Preview via Westpac for Q4 public demand

• Public demand is a key growth driver, expanding at an above trend pace in 2015, 2016 and 2017, with annual growth at 4.8%, 5.5% and 4.4% (we estimate), respectively.
• An upswing in public investment is underway, lifting from recent lows, as governments commit to additional projects - particularly transport infrastructure - now that earlier fiscal pressures at the state level have receded.
• In Q3, public demand increased by 1.5%, boosted by a sharp 7.4% jump in investment (which is often volatile quarter to quarter) but constrained by a rise of only 0.2% for public consumption (which accounts for 80% of public demand).
• For Q4, we anticipate a more modest rise in public demand of 0.6% as investment consolidates in the period.