CONSTRUCTION FALLING AWAY BUT GROWTH REMAINS 'IMPRESSIVE'

Written on the 28 July 2016

CONSTRUCTION FALLING AWAY BUT GROWTH REMAINS 'IMPRESSIVE' MAJOR engineering and commercial construction in Australia is falling away faster than expected, says Deloitte Access Economics in its latest Investment Monitor data, and that is expected to weigh heavily on growth.

But that growth currently remains on trend, 'A very impressive position to be in at the tail of a resources boom' says today's Deloitte statement.

The Investment Monitor had a total recorded value of projects of $822.4 billion, a 5.4% increase from the previous quarter and 0.3% above the level recorded a year earlier.

The value of under-construction or committed projects increased by just over $48.6 billion over the quarter, a 12.7% rise.  This takes the value of definite projects to its highest level since June 2015.

The value of planned projects in the database contracted by $6.7 billion, a 1.7% fall from the previous quarter.

Engineering construction is down by 27% over the year and activity in this sector is expected to fall back to 2005-06 levels by 2019-20.

Commercial property construction and other non-mining investment are showing weakness. "If the latest survey of private sector investment intentions published by the Australian Bureau of Statistics turns out to be correct, non-mining capital investment could fall to 4% of GDP in 2016-17 the lowest level since the survey began in 1987."

The Investment Monitor data follows Deloitte's monthly business outlook for July, which was released last week.


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter