Construction Work Done - Detail Encouraging

• Construction activity was softer than expected in the first quarter, rising just 0.2%, which was below our own and the consensus forecast. Construction work done has increased 5.0% over the past year.

 

• In the March quarter, the increase in construction activity was led by the public sector (+2.7%), while private sector construction languished (-0.5%). This highlights the key role of public infrastructure construction, particularly in transport, in driving economic growth.

 

• Residential construction lifted 0.4% in the March quarter, after falling in the previous two quarters. In an encouraging development, alterations and additions work rose 5.0% in the quarter. This was the strongest growth in alterations and additions construction since March 2010.

 

• The residential construction cycle has peaked and is now in a downturn. The resilience in residential building approvals suggests the downturn will be moderate over the coming 12 months.

 

• Non-residential construction fell 2.6% in the March quarter, with weakness in both private and public non-residential building.

 

• In the March quarter, construction work growth was driven by the eastern States, reflecting strong growth in engineering construction.

 

Please see the attached report for more information.

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