MNI DATA: Australia Construction Disappoints As Non-Resi Falls

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By Sophia Rodrigues

     SYDNEY (MNI)  - Construction work done rose less than expected in the first

quarter due to fall in private non-residential work but overall marked a rebound

from a sharp fall in the quarter prior.

     Dwelling construction rose for the first time in three quarters and could

make a tiny contribution to Q1 GDP. However, a fall in non-residential work is

disappointing given the Reserve Bank of Australia said it expects the growth in

non-residential construction seen over 2017 to continue.

     Data published by the Australian Bureau of Statistics Wednesday showed

construction work done rose 0.2% q/q in Q1, well short of MNI median forecast

for a 1.0% rise but rebounded from a sharp 18.3% fall in Q4.

     Non-residential construction fell 2.6% q/q, mainly due to a 4.2% drop in

private non-residential construction. This was first drop in six quarters for

both private and total non-residential construction.

     Dwelling construction rose 0.4% q/q, marking the first rise in three

quarters as drop in new residential building work was offset by a rise in

alternations and additions work.

     In terms of states, construction work rose in the three large states of New

South Wales, Victoria and Queensland which offset the decline seen in the other

five.

     Overall the data was weaker than expected, with decline in non-residential

construction the main disappointment.

     Below is the table: 

                               Private        Public                 Total

--------------------------------------------------------------------------

                          % Change Q/Q  % Change Q/Q          % Change Q/Q

Construction Work Done            -0.5          +2.7                  +0.2

MNI median                         N/A           N/A                  +1.0

                                                      (Range -2.0 to +5.0)

Building Work                     -1.0           1.4                  -0.7

-Residential Building             -0.1           N/A                  -0.2

-Nonresidential Building          +5.0           N/A                  +5.0

Engineering                       +0.4          +3.1                  +1.5

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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