The ABS has just released the December quarter Construction work done and it is a disappointing result showing a seasonally adjusted fall of 1% against economist expectations of a rise of 0.7%.
The break of the data was interesting because while the trend estimate for all construction rose 0.9% in December as noted above the seasonal number was down 1%. More importantly for the RBA which is desperately seeking a pick up in residential construction to help take the slack from the passing of the peak in the mining investment and construction boom.
So the trend estimate for residential building work which fell 0.3% in the December quarter and has fallen for two quarters will be disquieting.
Tomorrow’s Capital Expenditure data is more important generally than construction work on its own. It’s release at 11.30am eastern time tomorrow will now be awaited eagerly by the market.