The ABS has just released data on the value of construction work done for the March quarter of 2013, which registered a seasonally-adjusted -2.0% fall in total construction activity over the March quarter, but a 0.2% increase over the year. Analysts had expected a 1.0% increase over the quarter.
The fall in overall construction activity was driven by a sharp decline in engineering construction, which fell by -2.5% over the quarter. Building construction also fell, but by a more moderate -1.1% (see below charts).
Construction activity fell everywhere, except Queensland, with New South Wales, Victoria and Northern Territory leading the declines:
Overall, the data suggests that the mining investment boom that has powered the Australian economy has peaked. Moreover, the expected offset to growth from increased building activity (including housing construction) looks to have stalled, casting doubt over whether housing will be able to fill the void should the slowdown in engineering (mining) construction gather pace.
