Australia's construction sector misses badly on expectations
- Asian Market
- 3 weeks ago
Construction spending has taken a dive in Australia in the last quarter as infrastructure came off the boil and home building hit a one-year low, a disappointing result that adds to signs of a struggling economy.
It was the second straight quarter of sharp falls and challenges the dogged optimism of the Reserve Bank of Australia that growth will pick up this year.
The value of construction work done slid 3.1% in the December quarter, data from the Australian Bureau of Statistics showed.
Missing the forecasts of a 0.4% gain and followed a 3.6% drop in the previous quarter.
Total spending was an inflation adjusted A$51.1 billion ($36.69 billion), the lowest since early 2017 and, on paper at least, equal to around 0.3 percentage points off GDP in the quarter.
Source: Smart Trend Team