Growth continues

The value of construction in Australia is forecast to rise +10.8% in the 2007/8 financial year according to the latest Australian Industry Group (Ai Group) – Australian Constructors Association (ACA) Construction Outlook Survey. The rate of increase is expected to moderate to +7.4% in 2008/9.

ACA president Wal King said, “The survey confirms that engineering and commercial construction remains strong, with activity set to build on its current high base. It is also clear, however that supply constraints and rises in construction costs pose a risk to growth prospects.”

Among the key findings of the November survey, the Ai Group found that the total value of private construction is expected to hit AU$ 82 billion (US$ 72 billion) in 2008/9, more than double its value five years previously.

The main driver of growth in the industry is infrastructure work, with non-residential building also strong. However, the residential sector is weak, with a -12.8% decline in apartment building forecast for 2007/8.