Construction Work Numbers

Yesterday in Australia saw Construction Work Done falling 2.1% for Q3 (median +2%), with the private sector residential building a significant 5.9% lower. These numbers may suggest a rise in the downside risks for Q3 GDP expectations, which we are currently expecting to come in around 0.8%.

The US economic data was mixed, however the markets seemed to focus on the positive results from the Jobless Claims and Consumer Confidence, while ignoring the weak data for the housing sector, business spending figures and durable goods orders. As a result, the markets were higher across the board.

The weekly Jobless claims fell 34k to 407k, the lowest seen in two years, while the University of Michigan confidence rose to 71.6 in November from 67.7 in October. New home sales fell 8.1% in October (+1.6% median) and the US durable goods orders fell 3.3%, below the +0.1% median.

The European markets also gained some confidence with some more developments from Ireland. The Government released details of its 4-year austerity plan, where it plans to cut spending by 20% and raise income tax by $EU 1.9B. The $EU 85B bailout package has also been discussed with the EU/IMF and the sticking point remains to keep the corporate tax rate at 12.5%.

More positive news for Europe saw the German IFO rising to 109.3 from 107.7 in October. This is the highest level seen in the 20 year history of the number and further demonstrates the fundamental strength of the German economy, and in particular their high technology production sector. UK GDP came in as expected at 0.8% for Q3.

Today will see Q3 capital expenditure data released, however there are no other highlights as US markets are closed.