Australia’s construction activity seems to have declined in Q3

Australia’s construction activity has been easing since 2012 as work on mining projects is finished, noted Westpac in a research report. In each of the last three years, total work declined 1 percent, 8 percent and 4 percent, respectively. Australia’s construction activity is expected to have dropped further in third quarter of this year. According to Westpac, construction activity likely fell 1.5 percent, bringing the year-to-date decline to 5.4 percent.

However, excluding private infrastructure, activity is likely to have come in strong at 1.3 percent quarter-on-quarter, 16 percent above the level of two years ago. Private construction activity has declined 2.8 percent quarter-on-quarter, and 13 percent year-on-year, with infrastructure down 8 percent sequentially and down 34 percent annually.

Meanwhile, new home building activity rose sharply by 32 percent in 2014 and 2015, and is expected to make a more modest increase, said Westpac. Public activity is likely to have increased for the fifth straight quarter, rising 3.5 percent sequentially and 18 percent annually, possibly due to rise in infrastructure.