Australia: Q3 construction work done jumps by 15.7%/qtr - TDS
Analysts at TDS note that Australia’s Q3 construction work done surged 15.7%/qtr, driven by a significant 33% jump in engineering.
“This jump was on the back of imported LNG plants and while the construction data reflects the value of the asset when delivered, the only part that gets reflected in GDP is the value of work done on that asset in the qtr. As a result the jump in engineering is not expected to add to GDP. Looking at the other components, housing construction was softer for the 3rd straight qtr, —0.2%.”
“Non-residential building construction rose 1% on the qtr, confirming strength in non-mining business investment, while public sector engineering was up 6%/qtr, consistent with the focus by state governments to focus on infrastructure. Overall today’s number has little impact on Q3 GDP.”