Westpac on the Australia data - Construction Work done (Q2): 9.3% (expected 1.0%)

In brief: Construction work spiked in Q2, up a staggering $4.4bn, +9.3%.

  • This was well in excess of expectations
  • We assume that the figure has been inflated by the importation of Prelude, a floating LNG platform.
  • private infrastructure work jumped 32.2% in the quarter
  • Also, we are mindful that the import data, as reported in the monthly trade release, did not show a spike in June - hence our surprise today
  • At this stage we are inclined to expect the ABS will revise the import data with the release of the Balance of Payments on Tuesday September 5, a day ahead of the National Accounts.

In other detail

  • public works continues to rise. The upswing in public investment is a notable growth engine at present as governments commit to new projects, particularly in transport.
  • Private new home building activity was revised from a -4.6% for Q1 to a -2.7% ... was impacted by the disruptions due to wet weather and flooding in Qld and NSW