For those wondering if the Government's infrastructure spending is still continuing, we have these figures from the ABS released yesterday regarding construction activity in September
The value of total construction over the quarter increased by 2.7% (seasonally adjusted). However it was the construction activity for the public sector (or Government) that was the real driver for this growth, up 13.2% for the quarter (or 27.4% for the year). Private sector construction activity actually went down over the quarter by 2.2% (but was still up by 13.6% for the year). So without the Government spending, the construction activity would not be as positive. The Liberals need to find a new subject to attack the government.
Another interesting stat from this release is the fact that NSW Government spends more on construction activity than any other state government. Living in NSW, my question is, what the hell are we getting for our dollars! I presume it's the Federal Government school spending program (part of the GFC stimulus package), but we are outspending the VIC government by almost 10 times. Seems a little high to the goat.
There is a sting in the tail to the overall stats however. The value of work commenced in the September quarter was down 11.8% from the June quarter. This means that the construction stats for the December quarter will not be as promising. Sell Construction/Engineering stocks now! :-)
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