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.
According to the latest construction figures published by the ABS, the value of construction work has been dragged lower in the September quarter as industrial projects come to an end. Total construction in the September quarter fell by 2.8%, which is lower than the 1.0% increase expected and less than the revised +1.8% increase in the June quarter. On an annual basis, the growth rate dropped back from June’s revised figure of +0.8% to -16.9% as the September 2017 spike forms the base for annual calculations.
Australian Government bond yields had a quiet day. Offshore yields were slightly higher overnight and the construction figures provided little pressure to move yields one way or another. The yield on 3-year Australian Government bonds remained unchanged at 2.11% while the 10-year yield slipped 1bp to 2.63%. The Aussie dollar was also largely unaffected and it finished the afternoon session around 0.1 US cents higher at 72.40 US cents.