Australia: Downside surprise in construction work – TDS

Analysts at TD Securities note that the Australia’s Q3 Construction work done surprised to the downside, -2.8%/qtr vs the market forecast for a +1% rise for the quarter.

Key Quotes

“All sectors posted falls - Private residential -0.9%, private non res -2.2% and private engineering -7.5%/qtr. Total Public construction fell 1%/qtr, but we don't expect this to be a sustained trend given focus on State infrastructure investment.”

“Overall we would expect today's outcome to serve as a drag on GDP, but historically there has been less of a direct impact on GDP. Tomorrow's Capex print for Q3 is likely to be more instructive.”