AUD: Q3 construction work done was weaker than market expectations - TDS

Research Team at TDS, notes that the Australian Q3 Construction Work Done was weaker than the 1.6% drop the market was expecting, coming in at –4.9% /qtr (TD -3.0%), the biggest fall since Q4 2000.

Key Quotes

“The break down shows non-residential to be the big drag, declining 10.9%/qtr. Engineering (mining) investment still on the slide, -3.8%/qtr.  The broad weaker construction work number and recent soft retail sales prints suggests the markets are likely to revise down their Q3 GDP forecasts. Today’s price action though is not consistent with downside revisions to GDP forecasts, so perhaps the market is looking beyond to firmer net exports, offsetting weakness in other segments of the economy. Oct Skilled Vacancies dropped -0.4%/m (vs prior –0.4%).”