Response to the Australian Q4 Construction work data earlier today, a weak end to a weak year

Westpac on the data out earlier, which was a big disappointment:

• Australia Construction work done for Q4: -3.0% q/q (expected -1.0%)

Westpac:

• a weak end to what was a weak year for the construction sector.
• Disruptions from the bushfires may have added to the weakness in the quarter - although it is notable that sizeable falls were evident in all states

(not all states were impacted by the fires)

• home building downturn continues
• For private infrastructure, the turning point remains elusive
• uptrend in public works has resumed

As to implications for broader economic growth, with the construction sector representing around 13% of the economy, the 3% drop in work in the December quarter will have a material direct impact.