Tuesday March 1, 2011

Australian economy: should we worry about weakening construction?

The strength of construction, which held up the economy through the GFC and beyond, is running out of steam. However, says leading industry analyst and economic forecaster, BIS Shrapnel, the question we need to ask is: should we be concerned?
 
The short answer is don’t worry, according to BIS Shrapnel’s latest Economic Outlook Bulletin it will pick up from here. The construction sector is changing gears, with some areas winding down after strong activity, others continuing on, and yet others recovering after a dismal period. There will be huge fluctuations in some sectors, both on the upside and the downside, but in aggregate growth will be solid rather than spectacular.

Contact: Richard Robinson