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Construction work picks up for a ninth straight month

Property Markets / Planning, Zoning, Infrastructure

Australia

Nov 06 2017

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Elizabeth Tilley, The Advertiser

CONSTRUCTION work across the nation has picked up for a ninth straight month, according to new figures.

The Australian Industry Group Performance of Construction index eased to 53.2 in October from 54.7 in September

Any reading above 50 signifies expansion or growth of activity, however the pace of growth has been slowing since July.

Across the four major sub-sectors in the survey, engineering construction activity expanded for a seventh consecutive month to hit 10-year highs.

Government spending on road, rail and public transportation-related infrastructure projects continues to drive engineering jobs, wages growth and construction work.

The home building sector also expanded in October, though at a slower rate of growth.

Apartment-related activity picked up, but it remained at contractionary levels as new orders softened and investor demand continued to wane following recent lending restrictions.

CommSec senior economist Craig James noted the survey showed infrastructure-related construction work was booming across the nation.

“While mining projects have been completed, the handover to non-mining sources of construction, especially road, rail and transport projects are driving growth and creating jobs,” he said in a note to clients.

According to surveyor RBL, a total of 685 cranes are currently located on projects across Australia, with 350 in Sydney, 151 in Melbourne and 116 in Brisbane and on the Gold Coast.

Mr James said there was nothing in the data to change CommSec’s belief that official interest rates won’t change for at least a year.

SOURCE: The Advertiser

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