Australian Q1 construction work completed has just been released, and it’s well below forecasts.
In seasonally-adjusted terms the value of work completed fell by 2.4% to $48.397 billion. The figure was well below the upwardly-revised 0.6% decline reported in the December quarter and expectations for a further decrease of 1.5%.
It is also 8.8% below the level reported in Q1 2014.
The value of engineering work completed slumped 7.3% to $24.8 billion, offsetting improvements in residential (+4.8% to $14.733 billion) and non-residential construction (+1% to $8.864 billion).
The chart below shows the total value of construction work completed by sector over the past decade.
Having hit a peak of 62.35% of all construction work in Q3 2012, engineering work, while still the largest contributor in terms of dollar value, has now seen that percentage slip to 51.24%.
While there are some snippets of good news from the report, particularly the continued uplift in residential construction which has seen the total value of work increase by 11.4% over the past 12 months, it is clear, at least for the moment, that it is unable to offset the huge drop off in engineering work resulting from an end to the mining boom.