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
NEWS 
