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MNI DATA: Australia Construction Beats Forecasts On Dwellings

By Sophia Rodrigues
     SYDNEY (MNI)  - Construction work done in the second quarter rose more than
expected, and followed an upward revision in first quarter work mainly due to
rise in dwelling construction.
     Dwelling construction rose 3.1% q/q Q/Q in Q2, and Q1 was revised upwards
to +3.9% from a small 0.9% rise. This means the contribution of dwelling
construction to growth is likely to be revised upwards for Q1 GDP from the
originally reported 0.1 point, and a similar contribution could be expected for
Q2 GDP.
     Data published by the Australian Bureau of Statistics Wednesday showed
construction work done rose 1.6% q/q in Q2, far ahead of MNI median forecast for
a 0.8% rise. The outcome was just outside the range predicted in MNI poll. Q1
construction work was revised up to +2.4% q/q from +0.2% originally reported.
     The rise was due to a 2.5% increase in building construction and a 0.4%
rise in engineering work. 
     Within buildings, residential construction rose 3.1% as a 3.9% rise in new
buildings offset 3.1% fall in alternations and additions. Non-residential
construction rose 1.3% rebounding from  the 0.8% drop in Q1.
     Public construction rose 2.5% q/q in Q2, slowing from a 7.1% rise in Q1 due
mainly to slowing in public engineering work which rose 2.6% in Q2 versus 8.1% n
Q1.  
     Below is the table: 
                               Private        Public                Total
-------------------------------------------------------------------------
                          % Change Q/Q  % Change Q/Q         % Change Q/Q
Construction Work Done            +1.3          +2.5                 +1.6
MNI median                         N/A           N/A                 +0.8
                                                      (Range 0.0 to +1.5)
Building Work                     +2.6          +2.0                 +2.5
-Residential Building             +3.2           N/A                 +3.1
-Nonresidential Building          +0.9           N/A                 +1.3
Engineering                       -1.1          +2.6                 +0.4
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MTABLE,MALDS$,M$A$$$,M$L$$$,MT$$$$]

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