Economic Stimulus Programs Boost Building Industry

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26th May 2010, 02:40pm - Views: 618





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Media Release




26 May 2010



ECONOMIC STIMULUS PROGRAMS

BOOST BUILDING INDUSTRY 

Statement by Mr Peter Jones, Chief Economist

Building and construction work done rose

in the March

quarter, boosted by government stimulus

spending that is working to mitigate the downturn in other parts of the industry, according to Master

Builders Australia, the peak body for the building and construction industry.

Mr Peter Jones,

Master Builders Australia’s

Chief Economist said, “Public spending on education

and social housing is strongly

cushioning the building and construction

industry

from

what would

otherwise have been a sharp downturn.”

“In the past 12

months, building work done for the public sector has more than doubled, offsetting a

big fall in private work.”

“Residential building work done barely rose in the March quarter as the lingering effects of the step-

down in activity in the wake of the global financial crisis continues to play out.”

“Engineering construction activity is trending

lower although the pipeline of resources-related work

yet to be done and government infrastructure spending should cushion the impending fall.”

“The key to the outlook for the building and construction industry will be whether

an

upswing in

residential building

can offset weak

non-residential building, particularly as stimulus spending

programs begin to wind down.”

“Higher interest rates threaten to stymie the strength of the anticipated upturn in residential activity.”


Seasonally adjusted, the chain volume of construction work done in the March quarter rose by

1.9 per cent to $39.5 billion to be 5.6 per cent above levels in the March quarter 2009.


The chain volume of building work done in the March quarter rose by 4.4 per cent to $19.8

billion, to be up 4.8 per cent on the previous March quarter.  


Work done on residential building rose by 0.9 per cent to $10.6 billion,

to be up 0.8 per cent

on the corresponding figure a year earlier.  


Non-residential building work done rose by 8.6 per cent to $9.2 billion, to be up 9.8 per cent

on the March quarter 2009. 


Engineering construction work done

fell by 0.4 per cent to $19.7 billion to be up 6.4 per cent

on the previous March quarter level.

Further information contact:   

Peter Jones, Chief Economist, Ph: Mobile 0403 440 838






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