Construction figures fall unexpectedly The amount of completed building work in the first three months of the year unexpectedly fell, a sign that economic growth for the quarter could be weaker than expected. Construction work done in Australia fell two per cent in the March quarter and was up 0.2 per cent in the 12 months to March, the Australian Bureau of Statistics said on Wednesday. Market forecasts had centred on a two per cent rise in the quarter. Commsec economist Savanth Sebastian says the figures are a sign that the four interest rate cuts made by the Reserve Bank of Australia in 2012 are wearing off. "It doesn't seem to have the sustained impact that the Reserve Bank would like to see, couple that with the fact that the mining sector seems to be pulling back at a fast pace, it certainly keeps the door open for further rate cuts," he said. The figures are an indicator for the national accounts data to be released next week and Mr Sebastian said weak growth could mean there will be an RBA cash rate cut in August. "The lack of residential activity will have some downside risks for industry forecasts for growth," he said. There's no building going on and the sector is a big multiplier for growth. JP Morgan economist Tom Kennedy says the figures show the construction sector is continuing to struggle, even with low interest rates. But he says the figures will not be enough to convince the RBA to cut the cash rate again. "I don't think this data would be enough to get them over the line but it does add to their easing bias," he said. Mr Kennedy said the fall in engineering construction work suggested key capital expenditure data, to be released on Thursday, could be disappointing. "It does lend some downside bias to tomorrow's data," he said.