Andrew Hanlan, Research Analyst at Westpac, notes that Australia’s construction work, advanced by a robust 1.6% in Q2, exceeding expectations.
Key Quotes
“Currently, the construction sector is a growth engine, as again evident in the June quarter, with work expanding by 1.6%. This was an upside surprise (market median and Westpac 0.8%).”
“Importantly, the capital stock is expanding to meet the requirements of a fast growing population and government spending is expanding at a well above trend pace.”
“The main source of upside surprise was new home building, increasing by 4.1% in Q2 following a 3.8% gain in Q1.”
“Home building activity has formed a ‘double peak’ – initially in 2016 and now in 2018.”
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