Westpac comment on today's Q2 completed...>

AUSTRALIA: Westpac comment on today's Q2 completed construction work print,

noting that "the construction sector is in a downtrend, with activity having

peaked in mid-2018. This reflects: (1) the turning down of the home building

cycle; (2) a pull-back in public works; and (3) a further winding down of

private infrastructure activity led by the mining sector (although this dynamic

has largely run its course). With the construction sector representing around

13% of the economy this result will dent Q2 GDP, potentially in the order of

0.4ppts - depending upon how these quarterly partials flow through to the

national accounts estimates. The housing downturn still has further to go and

will weigh on conditions throughout 2019 and into 2020. On public works, there

is a sizeable work pipeline and governments are adding projects to the

investment pipeline - suggesting that the segment will be more supportive of

conditions over the forecast period. On private infrastructure, commencements

have picked-up somewhat (eg some iron ore projects have proceeded in response to

the recent elevated prices) and the work pipeline has increased - pointing to an

emerging lift in activity during the year ahead."