Australia: Expect a small fall of -0.2% in Q1 construction work - Westpac

The analysis team at Westpac explains that Australian construction activity weakened over the past three years as the downturn in private infrastructure (centred on mining) outweighed gains elsewhere and for March 2017, they anticipate another small fall, of -0.2%.

Key Quotes

“In 2016, construction work fell by 7.8%, although the rate of decline moderated in Q4, to a fall of only 0.2%. For March 2017, we anticipate another small fall, of -0.2%, mindful that wet weather in the month of March was a constraint.”

“Public works (20% of the total) should be a positive, led by transport projects, increasing by a forecast 3%.”

“Private infrastructure (25% of the total) is expected to report a solid (but not rapid) fall, as work on gas projects winds down.”

“Private building activity advances by a forecast 0.6%, with gains for both residential and non-residential.”