Figures for the first quarter of 2019 show that the construction industry is experiencing highs in the commercial sector but lows in civil infrastructure.
"Official figures for the first quarter of 2019 show that construction activity across Australia dropped by 1.9 percent compared with the end of 2018, but there were signs of growth in some important areas,” says Shane Garrett, Master Builders Australia’s chief economist.
The March 2019 quarter saw commercial building grow by 3.6 percent, while civil construction activity dropped down by 3.9 percent.
“Unfortunately, the decline in civil construction activity during the opening quarter of this year will not be a surprise to the industry. The time taken for government infrastructure announcements to translate into real, visible activity on the ground is often far too long,” says Garrett.
Garrett believes the Government's renewed mandate will drive civil construction projects this year, and with population and employment growth increasing across the nation, so will demand for more offices, schools, hospitals and shops.
“Not surprisingly, residential building moved backwards by 2.3 percent during the March 2019 quarter. Despite the fact that Australia’s population expanded by almost 400,000 over the past 12 months, fewer new homes are being built due to the negative impact of micro-factors including the slow motion credit environment post-Royal Commission,
“We look forward to the quick implementation of the government’s election pledges around First Home Buyer home loans and support for small businesses,” says Garrett.
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