Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Construction dive worse than expected

AAP  |  28 Feb 2019Text size  Decrease  Increase  |  
Email to Friend

Construction work done across Australia fell further than expected during the December quarter, adding further pessimism to the nation's economic outlook.

Wednesday's seasonally adjusted data from the Australian Bureau of Statistics showed a 3.1 per cent decline in total construction completions - missing consensus predictions of a 0.5 per cent increase - with the engineering and residential sectors a particular drag.

Building work on homes dropped 3.6 per cent on the previous three months, with the decline concentrated on the east coast, where activity has slumped amid a wider market downturn.

The biggest quarterly fall came from a 5.0 per cent decline in engineering work, which St George Bank analyst Jo Horton blamed on a "concerning" decline in public infrastructure completions.

"Today's data along with weak consumer spending suggests GDP growth for the December quarter is going to be weak," Horton said.

Work on non-residential buildings grew by 1.9 per cent for the quarter, rebounding from a 2.3 per cent decline in the September quarter.

Total construction work was down by 2.6 per cent from the same time last year.
ANZ analysts said construction work has been a key support to growth and employment in Australia in recent years and an earlier-than-expected downturn in the sector would be of concern for our outlook.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

December GDP data will be released on Wednesday, 6 March.

provides Morningstar with market news.

© 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

Email To Friend