AUD: Construction activity to decline by 1.5% in Q3 - Westpac

Research Team at Westpac, suggests that for Q3, they expect Australia’s construction activity to decline by 1.5%, bringing the year to date fall to 5.4%.

Key Quotes

“Although, we anticipate a strengthening of activity ex private infrastructure, +1.3%qtr, to be 16% above the level of two years ago.”

“Construction activity has been trending lower since 2012 as work on mining projects is completed. Total work fell in each of the past three years: –1%, –8% and –4%.”

“Private construction activity falls by –2.8%qtr, –13%yr, with infrastructure down –8%qtr, –34%yr. New home building activity, having surged 32% over 2014 and 2015, is likely to make a more modest gain, f/c +1%.”

“Public activity is expected to advance for a 5th consecutive quarter, +3.5%qr, +18%yr, led higher by infrastructure.”