Engineering Construction Activity

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Engineering Construction Activity June Quarter 2013
Economic Group Department of Treasury and Finance (08) 8999 6801 www.treasury.nt.gov.au economicservices.ntt@nt.gov.au

Engineering Construction Work Done
Value of Engineering Work Done NT Aust
Change in the quarter (trend) 4.2% 1.6%
Annual change (trend) 40.6% 2.6%
Year on year change (original) 83.5% 7.2%
In trend terms, the value of engineering work done in
the Territory decreased by 4.2 per cent to $876 million
in the J une quarter 2013 (Chart 1). Despite the
decline, levels of activity are at historically high levels
driven by the development of major projects including
the INPEX Ichthys liquefied natural gas (LNG) project
and expansion activity at several major mine sites
such as McArthur River zinc-lead mine and GEMCO's
manganese mine. Activity surrounding works at the
Marine Supply Base have also contributed to activity.
In original terms, private sector engineering work done
in the Territory increased by 22.6 per cent to
$804 million in the J une quarter 2013 compared to the
previous quarter. Partly offsetting the growth in the
private sector was a decline in the public sector work
done which decreased by 15.5 per cent to $29 million
over the same period. The continued decline in public
sector engineering activity in the Territory over the last
two years is consistent with the nationwide trend
towards state and Commonwealth spending winding
back after several years of high levels of expenditure.
In 2012-13, engineering construction work done in the
Territory increased by 83.5 per cent to $3.5B, the
highest annual level of engineering construction
activity in the Territory on record and the highest
growth rate of the jurisdictions (Chart 2). Growth was
primarily driven by the major projects listed above as
well as the arrival of the Montara Venture platform in
December quarter 2012, which contributed more than
$500 million to engineering activity in the Territory.
Also contributing to engineering activity are a number
of smaller projects relating to iron ore developments in
the Territory.
The Territory continues to experience strong growth in
engineering activity while the value of activity in
Australia has begun to plateau in the last two quarters
(Chart 3). This may reflect a peak in Australian mining
and energy investment while the Territory has yet to
reach its peak level of investment.
Work Yet to Be Done
In the J une quarter 2013, the Australian Bureau of
Statistics confidentialised the 'work yet to be done'
data and will no longer publish this information for the
Territory due to the commercially sensitive nature of
the data for major projects in Darwin region.





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400
500
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03 04 05 06 07 08 09 10 11 12 13
$M
Source: ABS Cat. No. 8762.0, DTF
Year ended J une
Work done (LHS)
Chart 1: Engineering Work Done (trend value and
quarterly change, Inflation Adjusted)
Year ended J une
Quarterlychange (RHS)
%
-10
0
10
20
30
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Vic ACT WA NSW Tas Qld SA NT Aust
%
Source: ABS Cat. No. 8762.0, DTF
Chart 2: Engineering Work Done
(Year on year percentage change, Inflation adjusted)
0.0
0.5
1.0
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2.0
2.5
3.0
3.5
0
50
100
150
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03 04 05 06 07 08 09 10 11 12 13
$B
Source: ABS Cat. No. 8762.0, DTF
Chart 3: Engineering Work Done
(Moving annual total, Inflation Adjusted)
Year ended J une
Northern Territory (RHS)
Australia (LHS)
$B
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Engineering Construction Acti vity June Quarter 2013
Released: 2 October 2013 Next Release: 15 J anuary 2014
2



Although all due care has been exercised in the preparation of this material, no responsibility is accepted for any
errors or omission.

Engineering Construction Work Done ($M, chain volume)
J une Quarter change
quarter year to date quarterly
1
annual
2
year on year
3
Northern Terri tory
original 851 3 461 23.2% 33.5% 83.5%
public
4
29 130 -15.5% -54.6% -46.4%
private
4
804 3 309 22.6% 41.1% 102.0%
seasonally adj 848 3 460 6.7% 34.4% 83.5%
trend 876 3 486 -4.2% 40.6% 86.7%
Austral i a
original 31 885 124 736 11.6% -2.9% 7.2%
Public 8 733 30 870 24.3% -5.0% -2.5%
Private 23 152 93 866 7.5% -2.1% 10.9%
seasonally adj 30 524 124 722 -0.5% -2.3%
trend 30 424 124 666 -1.6% -2.6%
Engineering Work Yet to be Done ($M, original, chain volume)
J une Quarter change
quarter year to date quarterly
1
annual
2
year on year
3
Northern Terri tory 0 n.a.
5
n.a.
5
n.a.
5
n.a.
5
Public
4
59 -22.6% -14.4%
Private
4
0 n.a.
5
n.a.
5
Austral i a 132 782 n.a.
5
n.a.
5
-7.2% n.a.
5
Public
4
14 484 -10.5% -14.6%
Private
4
118 298 n.a.
5
-6.2%
Engineering Work Commenced ($M, original, chain volume)
J une Quarter change
quarter year to date quarterly
1
annual
2
year on year
3
Northern Terri tory 309 1 644 -36.5% -54.8% -9.7%
Public
4
42 137 86.4% -30.3% -26.1%
Private
4
267 1 548 -42.4% -57.2% -5.3%
Austral i a 17 173 59 314 -28.8% -12.0% -46.5%
Public
4
8 145 29 323 28.5% 7.7% -2.8%
Private
4
9 028 37 753 -49.2% -24.5% -53.2%
2
compares the latest quarter with the same quarter last year
3
compares the 4 quarters up to and including the latest quarter with the previous 4 quarter period
4
Department of Treasury and Finance estimates
5
n.a. not applicable
Data note:
Seasonal adjustment is the process of removing froma time series influences that are systematic and calendar related.
Observed data needs to be seasonally adjusted as seasonal effects can conceal both the true underlying movement in the
series, as well as certain non-seasonal characteristics which may be of interest to analysts.
Source: ABS Cat. No. 8762.0, 8782.0
1
compares the latest quarter with the previous quarter

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