Engineering Construction Activity (ABS cat. 8762.0)
December quarter 2016
29 March 2017
Overview
On 29 March, the Australian Bureau of Statistics (ABS) released the December quarter 2016 edition of Engineering
Construction Activity, Australia (ABS cat. 8762.0). This publication summarises Australian engineering construction
activity (all construction activity other than houses and buildings) which is the best available indicator of
infrastructure investment in Australia (see the glossary of terms on page 10). Of particular interest is infrastructure
investment related to transport, water, mining and electricity.
All figures presented here are in real terms, adjusted for price changes using a deflator calculated by dividing the
current value of total engineering construction for each quarter by the equivalent chain volume measure.
Unless otherwise indicated, figures here are not seasonally adjusted or trend figures.
Summary
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Engineering construction work done increased by 2.9 per cent in the December quarter 2016—relative to the
previous quarter—to $20.3 billion. This increase was due to a 12.1 per cent increase in the value of work done
for the public sector with work done for the private sector falling by 1.7 per cent.
Engineering construction work commenced (a short-term indicator of the future construction pipeline) showed a
2.2 per cent decrease in the December quarter 2016—relative to the previous quarter. The December quarter
2016 is 9.8 per cent higher than the same quarter in 2015.
Engineering construction work yet to be done (a longer-term indicator of the future construction pipeline)
showed a 2.5 per cent decline in the December quarter 2016, relative to the previous quarter. This is a 5.6 per
cent decline over the same quarter in 2015. However, transport construction work yet to be done increased by
9.1 per cent this quarter. This continues the upward trend since the March quarter 2015.
The pie chart below shows the percentage of total engineering construction work done by project ownership in
the December quarter 2016.
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Engineering construction by data type
The ABS releases three forms of data including seasonally adjusted, trend and original. Seasonally adjusted
statistics reflect both irregular and trend movements but are smoothed for seasonal changes.
The value of seasonally adjusted engineering construction work done was $19.7 billion in the December quarter
down from $20.1 billion in the previous quarter. This is a decrease of 2.1 per cent on the previous quarter but is
31.5 per cent higher than the same quarter in 2006.
Trend estimates are derived from the seasonally adjusted data and smoothed to reduce the impact of irregular
changes. The trend estimate for engineering construction work done decreased by 4.5 per cent from $20.3 to $19.4
billion in the December quarter. The December quarter 2016 estimate is 28.3 per cent higher than the same
quarter in 2006.
The original data set is unadjusted (except for price). The original data estimates for engineering construction work
done increased from $19.7 to $20.3 billion in the December quarter, an increase of 2.9 per cent on the previous
quarter. The December quarter 2016 estimate is 31.0 per cent higher than the same quarter in 2006.
The remainder of this release reports original data, to capture the impact of seasonal variations and individual
projects.
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Engineering construction by sector
The value of engineering construction work done for the public sector:
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Increased by 12.1 per cent to $7.42 billion in the December quarter 2016;
Increased by 9.0 per cent relative to the same quarter in 2015; and
Increased by 23.5 per cent relative to the same quarter in 2006.
In the December quarter 2016, engineering construction work done for the private sector decreased by 1.7 per cent
to $12.84 billion. However, this is 34 per cent higher than the same quarter in 2006.
In the decade to December 2016, the value of private sector construction has grown at an average quarterly rate of
0.7 per cent and the public sector has grown at an average quarterly rate of 0.5 per cent.
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Engineering construction work done and the resources sector1
The value of private and public engineering construction work done in the resources sector decreased by 6.1 per
cent to $7.24 billion in the December quarter. In the decade to December 2016, the average quarterly growth rate
for construction in the resources sector was 0.9 per cent.
The resources sector was approximately 33.1 per cent of total engineering work done a decade ago compared to
35.7 per cent in the December 2016 quarter.
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The resources sector refers to the ABS category “oil, gas, coal and other minerals”.
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Transport infrastructure
In the December quarter 2016, the value of engineering work done on transport infrastructure increased by
15.2 per cent to $6.2 billion.
The value of work yet to be done increased by 9.1 per cent to $25.3 billion in the December quarter 2016. This
continues the upward trend since March quarter 2015.
The value of work commenced increased by 30.2 per cent to $8.3 billion in the December quarter 2016.
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Transport construction by sector
Work done on publicly owned transport projects increased by 21.6 per cent to $4.3 billion in the December quarter
2016. This was driven by a 31.4 per cent increase in the value engineering construction work done on road related
infrastructure. The value of such road related construction is 70.3 per cent higher than the same quarter in 2006.
In the December quarter 2016, transport infrastructure work done for the private sector increased by 2.3 per cent to
$1.8 billion. Construction for the private sector peaked in the December quarter 2012 at $5.1 billion.
Average quarterly growth rates for the private and p ublic sectors in the ten years to December 2016 were minus
0.3 per cent and plus 1.4 per cent, respectively.
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Transport infrastructure by mode of transport
In the December quarter 2016, the value of road related engineering construction work done increased by 28.2 per
cent to $5.0 billion. In the decade to December 2016, this indicator has increased at an average quarterly rate of
0.85 per cent.
The value of railway engineering construction work done decreased by 7.5 per cent to $0.96 billion in the
December quarter 2016. In the same quarter, harbour engineering construction work done decreased by 44.1 per
cent to $0.25 billion.
Compared to the same quarter in 2006, the value of engineering construction work done on road and rail related
infrastructure has increased by 40.4 per cent and 50.8 per cent respectively. In comparison, the value of
engineering construction work done on harbours is 30.0 per cent lower than the same quarter ten years ago.
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Electricity infrastructure construction
The value of electricity infrastructure construction work done increased by 7.6 per cent to $1.7 billion in the
December quarter 2016.
In the December quarter 2016, the value of work commenced increased by 23.3 per cent to $1.7 billion. In the
same quarter, the value of work yet to be done decreased by 6.0 per cent to $2.5 billion.
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Water infrastructure construction
In the December quarter 2016, the value of water infrastructure work done increased by 26.6 per cent to
$1.1 billion. In the same quarter, the value of work yet to be done increased by 16.0 per cent to $3.0 billion.
The value of work commenced increased by 13.3 per cent to $1.5 billion in the December quarter 2016.
From December 2006, water infrastructure construction work done increased markedly. The growth related to work
on the South East Queensland Water Grid and desalination plants in New South Wales, Victoria and South
Australia in response to the millennial drought. With the completion of these projects, activity has significantly
declined.
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Glossary
Engineering construction
Value of engineering construction includes work done on:
 Roads, highways and subdivisions, airport runways,
 Bridges
 Railways and tramways
 Harbours
 Water storage and supply, sewerage and drainage
 Electricity generation, transmission and distribution
 Pipelines (other than water)
 Recreation
 Telecommunications
 Heavy Industry
Building construction
A building is a rigid, fixed and permanent structure which has a roof. Its intended
purpose is primarily to house people, plant, machinery, vehicles, goods or
livestock.
Chain Volume Measures
An application of CPI based on a reference year.
Resources sector
Oil, gas, coal and other materials – includes construction of production, storage
and distribution of facilities, refineries, pumping stations and construction of mines.
Value of work done
This value only includes work carried out during the quarter. The value of work
done for the private sector consists of the value of work done on prime contracts,
plus speculative contracts, plus work done on own account. The value of work
done for the public sector is the work done by the organisation’s own workforce
and subcontractors.
Value of work commenced
Is a short-term indicator of the future construction pipeline (outlook). It consists of
projects that have commenced when site work begins.
Value of work yet to be done
Is a long-term indicator of the future construction pipeline (outlook). It is the value
of outstanding work for the project at the end of the period.
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Next scheduled release
28 June 2017 - Engineering Construction Activity, Australia - ABS cat. 8762.0 (March quarter 2017)
Related ABS releases
27 January 2017 - Producer Price Indexes, Australia - ABS cat. 6427.0 (December quarter 2016)
22 February 2017 - Construction Work Done, Australia- ABS cat. 8755.0 (December quarter 2016)
12 April 2017 - Building Activity, Australia- ABS cat. 8752.0 (December quarter 2016)
© Commonwealth of Australia 2017
ISSN 2206-3358
ISBN 978-1-925531-35-0
INFRA-3202
March 2017
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This publication should be attributed in the following way; Bureau of Infrastructure, Transport and Regional Economics (BITRE), Statistical Alert, Engineering
Construction Activity, Australia (ABS cat. 8762.0), December quarter 2016, BITRE, Canberra.
Acknowledgement
The Australian Bureau of Statistics releases the data summarised in this alert.
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