Australia: Construction work advanced by a robust 1.6% in Q2 - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that Australia’s construction work, advanced by a robust 1.6% in Q2, exceeding expectations.

Key Quotes         

“Currently, the construction sector is a growth engine, as again evident in the June quarter, with work expanding by 1.6%. This was an upside surprise (market median and Westpac 0.8%).”

“Importantly, the capital stock is expanding to meet the requirements of a fast growing population and government spending is expanding at a well above trend pace.”

“The main source of upside surprise was new home building, increasing by 4.1% in Q2 following a 3.8% gain in Q1.”

“Home building activity has formed a ‘double peak’ – initially in 2016 and now in 2018.”