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Wednesday, 30 September 2015

Engineering construction rises in June quarter

A surprise result today as total engineering construction bucked its downtrend to rise rebound by +5.6 per cent in the June quarter in seasonally adjusted chain volume measures terms, driven by a +10.2 rise in private sector activity.

The stronger than expected quarterly result was held up by a renewed burst of resources construction in Western Australia with $11.4 billion of activity recorded for the quarter.

Looking below at the value of work commenced, however, the trend remains down.

The one bright spot was to be found in New South Wales where expanded government coffers will now allow some public sector infrastructure spending to happen.

More than $5 billion of public sector work was commenced in NSW in the June quarter on roads, highways and subdivisions.

Overall, a healthier-than-expected result, but one which only delays total engineering construction work reverting back towards its long run average.