Australia’s construction sector is steadying, with the value of construction work in the March quarter rising by just 0.2 per cent, missing forecasts of a 1.3 per cent gain.
The latest data from the Australia Bureau of Statistics revealed a fractional increase in construction activity which granted the sector a five per cent rise in value.
The value of construction over the March quarter rose to $51.2 billion, undershooting forecasts for a larger increase.
The value if residential construction took a dive over the year, dropping 1.3 per cent while engineering and non-residential construction picked up the slack with 10.3 and 5.4 per cent increases respectively.
Much of this increase has been attributed to large transport infrastructure projects under way across Australia’s capital cities like Sydney and Melbourne, funded by state and federal governments.
Related reading: Federal Budget 2018: Infrastructure, Investment and Build to Rent
Developer group Urban Taskforce says that the quarterly construction figures from the ABS indicate a slowdown in NSW as Victoria expands.
“The latest construction figures indicate a slowing rate of work in NSW particularly for non-residential work.” Urban Taskforce chief executive Chris Johnson said.
“When the figures are looked at on a per capita basis Victoria does seem to be building more than NSW. For total building in the March quarter NSW construction was $1,145 per capita while Victoria spent $1,343 per person.”
Despite the 1.3 per cent drop over the year, the value of residential construction still inched 0.4 per cent to $18.05 billion during the most recent quarter, signifying a slight comeback but still reflecting previous declines in Australian building approvals.
Building approvals related more to tourism, entertainment and recreation facilities, Commonwealth Bank senior economist Belinda Allen said.
The small difference in numbers reflected separate research conducted by building groups who noticed a slowing down in activity during April.
