Construction Work Done Reveals Non-Residential Building Up as Property Remains Flat: CCIQ
The value of construction completed in the September quarter fell 0.4%, lower than forecast by economists of a 1% decline as home building activity fell, whilst non-residential activity was up 4% nationally according to the latest data released by the Australian Bureau of Statistics.
The Chamber of Commerce and Industry Queensland (CCIQ) notes that whilst home building was flat for the quarter in Queensland, engineering and non-residential activity rose by 8.4% over the same period.
CCIQ Chief Economist, Dr Marcus Smith said the non-residential component of the report should continue to lift as a low interest rate environment makes investment in rental property increasingly attractive and State and Federal Governments seek to expedite more than $4 billion of projects in the coming months.
“Nevertheless, non-residential work falls short in terms of average spending over the last decade and the latest data does not reflect an uptick in mining activity, which is key in terms of improving sentiment around the state’s key indicators of overall business confidence and hiring intention.
“The residential data on the other hand has been relatively flat; and in the midst of subdued building approvals figures for the State over the year the construction industry will be hoping for an increase in activity during the first half of 2020”, Dr Smith said.
CCIQ notes the value of construction work done for the quarter in Queensland was $5.3 billion.