Westpac economist Andrew Hanlan on the Australian Q3 construction work data released earlier

Data is here ... but, hey, to save you a click:

-4.9% q/q

  • expected -1.6%
  • prior -3.7%

WPAC:

  • Construction work is trending lower from historic highs
  • Led lower by the mining investment downturn
  • With the construction sector accounting for around 14% of the economy this is a material headwind
  • Over the past year, construction activity is down by 11.1%
  • The September quarter outcome will subtract in excess of 0.5ppts from quarterly GDP
  • This outcome adds to evidence that the economy hit a soft spot in the middle of 2016
  • Downside surprises in housing and public works, both of which are likely to improve in coming quarters