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 follow two weeks later.
According to the latest construction figures published by the ABS, the value of construction work dropped back by what would normally be seen as an alarming 19.4% in the December quarter. On an annual basis, the growth rate dropped back from September’s 12 month revised figure of +31.4% to +4.6% in the December quarter.
The reason analysts and economists were not particularly concerned by the massive drop is they expected a reversal after the presence of two particular items in previous quarters. Construction work had grown by outsized amounts in the June and September quarters after two LNG platforms were imported and included in those quarters’ figures. The December figures represented a return to “normal”.