Economic briefing note on engineering construction in September 2016

September 2016

Release date: 18 January 2017
Next release: 29 March 2017

In September quarter 2016, engineering construction work done in Victoria rose by 0.9 per cent, while Australia experienced a decrease of 4.7 per cent over the same period. Western Australia (down 17.2 per cent) recorded the largest decline over September quarter 2016.

The most significant engineering construction increases in Victoria by sector were in telecommunications (up $147 million) and recreation and other (up $4 million). While the largest decreases were in the electricity generation, transmission etc. and pipelines (down $155 million) and roads, highways and subdivisions (down $130 million) sectors.

In the year to September quarter 2016, Victoria's engineering construction growth (up $392 million or 15.3 per cent) was the highest among the states, ahead of New South Wales (up $251 million or 6.2 per cent) and Tasmania (up $1 million or 0.3 per cent). 

In the year to September quarter 2016, the largest increase in engineering construction in Victoria was in telecommunications (up $184 million), while the largest decrease was in water storage and supply, sewerage and drainage (down $60 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
Sep quarter 2016 ($ million)  43362958 45211103529832920,080
Change since June quarter 2016, $ million (%) -71 (-1.6) 27 (0.9) 69 (1.6)  10 (0.9) -1104 (-17.2) 39 (13.5) -990 (-4.7)
Annual change to Sep 2016, $ million (%) 251 (6.2) 392 (15.3) -650 (-12.6) -170 (-13.3) -5562 (-51.2) 1 (0.3) -6314 (-23.9)

Value of work done in Victoria by sector

SectorSept quarter 2016 ($ million)Change since June quarter 2016, $ million (%)Annual change to Sep 2016, $ million (%)
Roads, highways and subdivisions639-130 (-16.9) 45 (7.6) 
Bridges, railways and harbours402-50 (-11.1) 175 (76.8) 
Electricity generation, transmission etc and pipelines449-155 (-25.7) -53 (-10.5) 
Water storage and supply, sewerage and drainage119-116 (-49.3) -60 (-33.3) 
Telecommunications622147 (30.9) 184 (41.9) 
Heavy industry271-90 (-25.0) 3 (1.0) 
Recreation and other2874 (1.3)65 (29.4)

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: 13 February 2017