Published on : Nov 25, 2015
The overall value of the Australia construction activity, inclusive of engineering and building work, reported a decline of 3.6 per cent in the previous quarter, compared to the second quarter. This can largely be attributed to a major downturn in mining investments.
The Australian Bureau of Statistics said on Wednesday that the value of building work completed, both non-residential as well as residential, increased by a mere 0.6 per cent.
The overall construction number, however, was brought down by a 7.30 per cent decline in the value of completed engineering work during the third quarter in comparison with the previous one.
The drop in construction activity in Australia is largely consistent with the end of a long boom in mining investment, even though it is partly being offset by a rise in construction of residential buildings, which came following surge in house prices and exceptionally low interest rates.
According to the Australian Bureau of Statistics, the overall worth of the construction industry was – seasonally adjusted – just a little over US$ 49 billion in the quarter that ended in September, down by 3.60 per cent in the quarter ending in June. The year on year drop was 3.70 per cent.
Construction of residential units made up for $15.5 billion, rising by 2 per cent from the previous quarter and 12.40 per cent from the previous year. Non-residential construction amounting to $8.6 billion was down almost 2 per cent against the September quarter and 3 per cent down year on year.
The headline number on Wednesday was even worse that what was initially expected, which was a 2 per cent decline. However, the Australian dollar barely shifted and dipped just a little before settled at US$72.62.
The Australia and New Zealand Banking group had predicted a 6.1 per cent fall, a particularly weak decline brought on by the mining industry.