Earlier posts:

CBA analysis ... in summary:

Construction work done rose by a whopping 15.7% in Q3 to be 30% higher over the year

  • Engineering work done jumped by 33% in Q3 thanks to the import of the Prelude & lchthys FLNG platforms
  • Building work done fell by 0.4% 03 but was up 1.4% over the year.
  • Residential fell 0.2% and non-residential by 0.6% in Q3
  • Residential construction is set to slide further. It should be partially offset by the large infrastructure projects underway.

More (in brief & bolding mine):

The very large expenditures on the imported Floating LNG platforms ...

  • Because they are imports it neutralises the effect on GDP by showing as a positive for investment and an offsetting negative in imports

At this stage we expect Q3 GDP to print near the 0.5% and 2.9% pa levels

In our view there is some scope to remain optimistic that the residential building activity will stay at relatively high levels over the next few quarters.

  • The leading indicator, building approvals, is holding up rather than weakening noticeably. The continued period of low interest rates tends to favour continuing construction activity. Especially when demand conditions, proxied by strong population growth, are favourable.
  • Non-residential building work fell by 0.8% in Q3 but is still up a strong 7.9% over the past year. Building approvals related to tourism exposed sectors, such as retail and accommodation (hotels and serviced apartments), as well as commercial offices remain quite firm.

... there has been a rise in engineering related inflation

  • We suspect it could be related to the large scale transport infrastructure projects underway in Melbourne and Sydney

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ps. Australian Q3 GDP is due December 6