Australia’s Q2 Construction Work Done rose by +1.6%/q (TD +1.5%, mkt +0.8%) where both private (+1.3%/q) and public (+2.5%/q) activity contributed to the expansion, notes Annette Beacher, Chief Asia-Pacific Macro Strategist at TD Securities.
Key Quotes
“There was a substantial upgrade to Q1 private housing construction from a small decline to +3.8%/q. This could upgrade Q1 GDP from +1.0%/q to +1.2%/q (ceteris paribus).”
“Our Q2 GDP tracking is +0.9%/q and 3.0%/y, matching the RBA’s August SoMP projection of 3%/y.”
“This report tends to fall under the market’s radar, but a decent Q2 GDP print, as well as an upgrade to Q1 GDP, is unlikely to be so easily dismissed on 5 September.”
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