Quarterly construction data compiled and released by the ABS are not considered to be of a “primary” nature in the same way as unemployment (Labour Force) and inflation (CPI) figures. However, the figures are viewed by economists and analysts with interest as they directly feed into quarterly GDP figures which come out two weeks later.
According to the latest construction figures published by the ABS, the value of construction work stabilised in the March quarter after a spike and subsequent reversal in the September and December quarters. Total construction in the March quarter increased by 0.2%, which is less than the 1.3% increase expected and in stark contrast to the 18.3% fall previously recorded. On an annual basis, the growth rate dropped back from December’s revised figure of +6.0% to +5.0% in the March quarter.
ANZ senior economist Daniel Gradwell described the figures underlying the construction report as “solid” even though the headline figures were below expectations. “Work continues to steam ahead in the public sector, while the housing sector still has some life left. Despite some emerging weakness in the non-residential segment, we expect private construction will make a modest contribution to Q1 (March quarter) GDP growth.”