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Analysts at TD Securities note that Australia’s construction activity fell -3.8% in Q2’19, coming in below consensus at -1% and TD at -0.5%.

Key Quotes

“The bulk of the drop in construction was due to the 5.1%/q decline in private dwelling investment. Private engineering construction was 2.5% lower in Q2 and non-residential construction dropped 7.3%/qtr.”

“We had anticipated a softer outcome given the uncertainty ahead of the May election, but the larger than expected decline implies downside to Q2 GDP. The Q1 outcome was also revised lower from -1.9%/q to -2.2%/q.”