Here are a couple of recaps of the Q1 Construction Work Done data from earlier in Australia (data is here)
First, from David Scutt’s blog (a must-read) – bolding mine:
- In a good sign for rebalancing, residential construction increased +3.3% to $21.77b with the annualised rate increasing to +6.2%.
- Engineering construction, driven largely by mining works in recent years, continued to soften, falling by -1.6% to $31.85b.
And now from MNI:
- The fall in engineering construction reflects the drop in resources related work. The peak in resources investment in the country is believed to be over.
- The data may be in line with the Reserve Bank’s expectation as the central bank expects resources sector investment to decline significantly in the period ahead.
- The RBA also expects dwelling construction to grow strongly and contribute to growth in the period ahead, but key for Australia’s rebalancing is a rise in investment intentions in other sectors.
