Despite concerns that the construction industry was shrinking just a few months ago, there has been a sudden upswing with the sector hitting its highest level of growth in ten months. Industry experts suggest that this is partly due to the Reserve Bank cutting the official interest rate to a record low of 1.75%, causing the Australian Industry Group’s performance index to jump 6.5 points, indicating that construction activity was once again expanding.
Part of this growth included an increase in new orders for the first time in eight months and a jump in on-ground activity and employment. Experts also say this has all happened at the fastest pace in over ten months.
In good news for anyone involved in construction, all four sub sectors showed growth, even the engineering sector which has borne the brunt of the end of the mining boom recently. Commercial construction was also a benefactor of the upswing, however residential construction lead the way up 13.7 points in the apartment sector and housing increasing to a record 62.1 points.
Peter Burn from the Ai Group predicts that the trend is likely to continue into the new financial year, which is cause for celebration across the construction industry, who was concerned about the downturn from earlier this year.
The apartment building sub sector is set to be a standout performer, already performing well and still receiving several new orders suggesting that they’re on track to continue their expansionary run over in the next term.
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