Data: Australian Construction Work Done Q1: +0.2% q/q (exp +1.3%)
I didn't get a chance to post much on it, bigger moves were afoot!
Westpac have posted up their first response:. In brief:
- headline result fell short of expectations
WPAC do see positives though:
- However, positives in the detail - around a strong rise in residential renovation work - suggest the overall result is broadly in line with our priors. Note that the Construction survey under weights renovation activity relative to the national accounts.
Public construction is a growth driver, up a further 2.7% in the quarter
- led by infrastructure
- There is considerable further upside to public investment
Private engineering work was broadly stable
- diminished drag from the mining investment wind-down
- lift in non-mining activity
- there is still some downside to mining investment with the remaining gas projects under construction to be finalised over the coming year
New home building activity consolidated in Q1
- we expect the downturn in home building activity to accelerate in 2019
Home renovation activity rebounded, with a bounce of 5% exceeding our expectations for a rise of 2.5%. This continues the volatility around a generally subdued trend.
- Private non-residential building activity surprised to the downside
- at odds with the strength in approvals, suggesting that this decline will be quickly reversed
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MArket response has been a lower AUD …. but do note other currencies are off against the USD also (except yen)
