REPEAT:MNI Australia Construction Beats Forecasts On Dwellings

Repeats Story Initially Transmitted at 02:02 GMT Aug 22/22:02 EST Aug 21

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]