We got the Q2 Australian 'Construction Work Done' report earlier
It came in at a big beat on expectations at +1.6% q/q (vs. -1.5% expected)
And the highest since 2013 Q3
Westpac (Senior Economist Andrew Hanlan) expresses surprise ... (bolding mine)
- The construction report reads more like an update from 2011, when the mining investment boom was in full swing.
But ... don't get too excited:
- This spike in infrastructure work will not be sustained
- Rather sizeable falls ahead are in prospect
More:
- The construction sector (which accounts for around 15% of the economy) will add to growth in the June quarter 2015
- This will provide a partial offset to the drag from net exports
- Outside of WA (that's Western Australia in case you don't know) infrastructure, construction work was weak
- Public works weakened further, falling sharply
- Commercial building was little changed
- Private new residential building surprised, falling by 3.6%, defying the upswing in approvals