According to a leading industry group’s construction outlook, Australia’s construction industry is set to recover after a three-year downturn.

1. Industry Research
Survey:
AU’s Construction
Sector to Grow for Fifth
Consecutive Month
Form Direct

2. According to a leading industry group’s construction outlook, Australia’s construction
industry is set to recover after a three-year downturn.
The survey, a joint effort by the Ai Group and the Australian Constructors
Association, revealed that June’s healthy growth signals another expansion in July –
the fifth consecutive month this year. While they noted differences in the sub-
sectors, the softening of growth via new orders caused the highest expansion pace
in 11 years.
Steady Growth
While the volatile apartment building sub-sector slightly decreased in total
construction activity after a strong performance in May, Australia is enjoying a
generally positive construction industry climate.
According to Peter Burn, head of policy of Ai Group, June was another buoyant
month in the country’s construction industry, as both commercial and house
building construction recorded solid gains. Engineering construction, meanwhile, is
still benefitting from the gains the industry saw in April and May.
He adds that after an extended period of weakness, new orders for commercial
construction have noticeably picked up. Burn believes the arrival of the much-
awaited lift in the construction industry is good news for the economy’s overall
stability.

3. Differences in the Sub-Sectors
Principal Economist of the Housing Industry Association (HIA) Tim Reardon said that
after its peak in 2016, the cycle of the residential building has just entered a new
phase. Reardon adds that this new cycle may be characterised by a striking
contraction in apartment and detached house buildings. The activity in residential
buildings may be edging from a historical high, but overall activity still hovers at an
elevated level.
Across the industry’s sub-sectors, house-building has the strongest rebound
recorded, rising 13.4 points to 59.0 in June.
While commercial construction fell 0.07 points to 54.5, engineering construction
stabilised after two months of solid growth. Experts predict that despite occasional
dips, the sub-sector will remain on a firm footing.

4. Sources:
http://formdirect.com.au/products/construction-consumables-old.html
http://www.theconstructionindex.co.uk/news/view/australian-construction-
continues-to-grow
http://news.xinhuanet.com/english/2017-06/29/c_136403543.htm