Credit: Data is here: Australia - Construction Work Done (Q2): -3.7% (expected -2.0%)
ANZ say the steep drop in engineering construction suggests the mining sector is at its peak drag on GDP:
--
WPAC's take:
- Construction work is trending lower, led ... by the mining investment downturn.
- The sector accounting for 13% of the economy this is a material headwind
- Over the past year, construction activity is down by 10.6%
- The June quarter outcome will subtract in the order of 0.3ppts to 0.4ppts off quarterly GDP
- New home building activity was flat in the period, whereas we had anticipated a modest gain
- Going forward, there is still some further upside to home building, although the period of strong growth is behind us
- The private non-residential building cycle has turned down in 2016
- Public works advanced for a fourth consecutive quarter
- State governments are committing to additional investment, including public transport projects.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
