Economic briefing note on engineering construction in June 2016

June 2016

Release date: 28 September 2016
Next release: 18 January 2017

In June quarter 2016, engineering construction work done in Victoria rose by 2.7 per cent, while Australia experienced a decrease of 9.9 per cent over the same period. Western Australia (down 28.0 per cent) recorded the largest decline over June quarter 2016.

The most significant engineering construction increases in Victoria by sector were in electricity generation, transmission etc. and pipelines (up $225 million) and bridges, railways and harbours (up $135 million). While the largest decreases were in the telecommunications (down $74 million) and roads, highways and subdivisions (down $28 million) sectors.

In the year to June quarter 2016, Victoria's engineering construction growth (up $311 million or 11.9 per cent) was the second highest amongst the states behind New South Wales (up $379 million or 9.5 per cent).

In the year to June quarter 2016, the largest increase in engineering construction in Victoria was in electricity generation, transmission etc. and pipelines (up $259 million), while the largest decrease was in roads, highways and subdivisions (down $203 million).

Value of work done in Victoria

This chart shows the value of engineering construction work done in Victoria and Australia between June 2006 and June 2016 in billions of dollars. In June 2006 the value of engineering construction work done in Victoria was $2.3 billion. The value of engineering construction work done trended downwards to $2.0 billion in June 2008. Between June 2008 and December 2011 the value of engineering construction work done trended upwards, reaching $3.2 billion in December 2011. Between December 2011 and September 2014 the value of engineering construction work done trended downwards, reaching $2.4 billion in September 2014. Since September 2014 the value of engineering construction work done in Victoria has trended upwards, and sits at $2.9 billion in June 2016. In June 2006 the value of engineering construction work done in Australia was $15.1 billion. The value of engineering construction work done trended upwards to $20.3 billion in September 2010. Between September 2010 and September 2012 the value of engineering construction work done trended upwards at a faster rate, reaching $34.7 billion in September 2012. Since September 2012 the value of engineering construction work done in Australia has trended down, and sits at $21.2 billion in June 2016. 

Value of work done NSW VIC QLD SA WA TAS AUS
June quarter 2016 ($ million) 4356 2926 4445 11346472 280 21,205
Change since March quarter 2016, $ million (%) 120 (2.8) 78 (2.7) 144 (3.4) -28 (-2.4) -2517 (-28.0) 18 (6.9) -2321 (-9.9)
Annual change to June 2016, $ million (%) 379 (9.5) 311 (11.9) -1340 (-23.2) 55 (5.1) -6068 (-48.4) -16 (-5.2) -7415 (-25.9)

Value of work done in Victoria by sector

 

SectorJune quarter 2016 ($ million)Change since December quarter 2015, $ million (%)Annual change to March 2016, $ million (%)
Roads, highways and subdivisions768-28 (-3.5)-203 (-20.9)
Bridges, railways and harbours414135 (48.4)177 (74.5)
Electricity generation, transmission etc and pipelines783225 (40.2)259 (49.4)
Water storage and supply, sewerage and drainage24784 (51.7)47 (23.7)
Telecommunications476-74 (-13.5)84 (21.6)
Heavy industry217-1 (-0.4)-99 (-31.4)
Recreation and other28328 (11.1)102 (55.9)

Source: Australian Bureau of Statistics (ABS), cat. no. 8762.0 – Engineering construction activity, Australia

Note: ABS does not publish chain volume measure data by sectors at state level, hence original data is used. All other figures are chain volume measures.

Contact

Please email economic.analysis@ecodev.vic.gov.au for more information.

Page last updated: 21 October 2016