Resources sector investment hasn’t peaked yet in Qld – we now lead Australia in construction

Unlike the rest of Australia, construction activity increased in Queensland in the March quarter. This was due to heavy, so-called engineering construction, no doubt resources sector-related, as residential and non-residential building activity (i.e. houses, flats, office buildings, shopping centres, etc) continues to languish (see chart below based on yesterday’s ABS data).

Construction

Queensland is now ahead of WA in engineering construction, most likely because of the massive capital investment associated with building the LNG plants up at Gladstone (see chart below).

EngineeringIn fact, as MacroBusiness’s useful State comparison chart shows, Queensland now leads Australia in total construction activity (see Mining investment has peaked).

 

 

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2 Responses to Resources sector investment hasn’t peaked yet in Qld – we now lead Australia in construction

  1. Katrina Drake says:

    Very interesting Gene. Very unexpected statistic that engineering construction activity in Queensland has more than double since the GFC. Thanks for that insight.

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