According to Timetric’s Construction Intelligence Centre (CIC), construction output in Australia is forecast to decline by an annual average of 3.5% over the next five years. This compares to a 5.6% annual increase in real terms over the last five-year period. Timetric’s CIC expects the country’s construction output to reach a nominal value of US$170.2 billion in 2019, down on the US$191.3 billion recorded in 2014.
The forecast contraction has been attributed to a number of factors, including: slowdown in the mining industry; less investment in the energy industry; ambiguity relating to renewable energy targets.
Although the government has announced investments in transport infrastructure, this is not expected to have a major impact on construction sector output.
On a more positive note, residential construction activity is forecast to help boost output in 2015 – 2019. Last year for example, the number of dwelling units increased by 11.9% y/y.
“Residential construction is anticipated to be the main driver of growth over the forecast period as low interest rates, migration to urban regions and the rising population are expected to drive the market’s expansion up to 2019,” explained Sina Zavertha, Economist at Timetric’s CIC.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/asia-pacific-rim/30042015/australian-construction-output-expected-to-contract-says-timetric-cic-766/