According to the Australian Bureau of Statistics we are in the midst of a construction boom. Total construction work done in Australia rose by a record 12.5 per cent in the September quarter.
Construction work in chain volume terms, seasonally adjusted, was valued at $47.467 billion in the September quarter, compared with $42.191bn in the June quarter, the ABS said today.
The median market forecast was for total construction work done to have risen 2 per cent in the September quarter.
The ABS said total building work done in the September quarter was $19.414bn, seasonally adjusted, from $19.303bn in the June quarter.
Engineering work done was up to $28.053bn in the September quarter, from $22.888bn in June.
This is not necessarily housing or residential construction. It seems that non-residential building bounced from the lowest level in two years, but residential construction has actually fallen away. Nonetheless statistics suggest that the demand for commercial business loans and personal loans is also on the increase, while home loans are falling out of favour.
For the Reserve Bank the data indicates a very strong increase for capex for third quarter GDP and shows that the investment boom is driving growth in the face of increasing uncertainty from European sovereign debt concerns.
On a state-by-state basis, WA rose, NSW rebounded, Victoria bounced Queensland was flat and South Australia dropped.