Australian Private Construction data has been released and for all the recent doom and gloom about the mining cliff it was a surprisingly solid result coming in at +2.7% in Q3 2013 versus a consensus estimate of 0.5%.
In fact, as Annette Beacher, TD Securities Head of Asia Pacific Research, said in a note to clients, this was the largest increase in 18 months and has, “boosted our (TD Securities) Sept quarter GDP forecast from +0.5% to +0.7% (subject to tomorrow’s capex report and a litany of partials released next week such as inventories and net exports).”
You can see how strong this is in the context of recent history chart below and that it was driven by engineering which was up 6.9% on the quarter.
Beacher notes this will feed straight into GDP.
The market is waiting on tomorrow’s Q3 Capex report but this is a good number for the economy regardless.