Weak Australian construction work data pushes the Aussie lower
According to the Australian Bureau of Statistics Australia, construction work done for the fourth quarter of 2018 has declined more than expected.
ABS data shows Australia's construction work done for the fourth quarter of 2018 has declined more than expected.
Fourth quarter construction work comes in at -3.1%, missing expectations by a long shot. Analysts say it was widely expected to jump 0.5% from previous year which was -2.8%.
IG market analyst Kyle Rodda says, the data shows that we haven't turned the corner in that part of the economy yet.
‘For years construction fuelled growth post-mining boom, but now that's fallen away. It's not good for the growth outlook, and it makes CAPEX data tomorrow that little bit more interesting.’ Mr. Rodda said.
It comes after construction work data also declined in Q3, but despite the last quarter decline, expectations for the final quarter were still higher.
Analysts say the weak data plays into Australia’s Gross Domestic Product (GDP) which is due to be released next week.
ABS figures on construction and engineering
According to the ABS the trend estimates for total construction work done fell 2.5% this quarter and has fallen for three quarters.
The trend estimates for total building work done fell 1.2% this quarter and has fallen for two quarters.
Total construction in seasonally adjusted terms fell 3.1 % in Q4 and the total value of construction work done last year was $51.6 billion, around 2% lower than in 2017.
The trend estimate for engineering work done fell 4.0% in the December quarter, while the seasonally adjusted estimate for engineering work done fell 5.0% to $21,492.8m in the December quarter.
Australian dollar price
AUD/USD slightly just below $0.7185 after the data. The pair traded to $0.7200 in early trade on Wednesday just ahead of resistance at $0.7200
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