The Australian Bureau of Statistics (ABS) has just released data on construction materials volumes for the September quarter. While it showed a continued improvement in the production of clay bricks – a material typically used in housing construction – there was no associated increase in roof tile production. There was also ongoing weakness in the production of concrete blocks and plaster board, whereas production of cement and pre-mixed concrete – items more associated with infrastrure and mining investment – rose.
The data is not seasonally-adjusted and is highly volatile. Hence it is presented below on a four quarter moving average (4QMA) basis in order to smooth volatility and seasonality:
Overall, the data signals only a tepid recovery in dwelling construction.
