The ABS has just released data on the value of construction work done for the June quarter of 2013, which registered a seasonally-adjusted -0.3% fall in total construction activity over the June quarter and by 0.9% over the year. Analysts had expected a 1.0% increase over the quarter.
The falls in construction activity were across-the-board, with non-residential construction (-1.3%) fairing the worst and residential construction (-0.1%) the best (see below chart).
Residential construction – the great hope as the mining investment boom unwinds – has fallen for two consecutive quarters, which would likely worry the RBA (see next chart). On the other hand, engineering construction has probably held-up better than expected.
Queensland drove the fall in construction activity, registering an -5% decline over the quarter. Surprisingly, however, Queensland’s fall was mostly offset by a 4% increase in Western Australia:
Overall, the downtrend in construction activity expected as the mining investment boom unwinds continues, although at a gentle pace.
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