The national economy is gaining momentum and, based on improved results on economic indicators, the forecast return to surplus is now forecast earlier than previous expectations. As we reported in our November 2016 commentary, the anticipated growth in engineering construction has fuelled price increases. Construction spend, particularly in New South Wales and Victoria, is increasing with massive infrastructure investment across road, rail, water, ports and airports. With the heat coming off the multi-residential sector, and the decline in mining, the ‘Infrastructure Boom’ has replaced the mining boom. Australia’s two-speed economy is reflected in WT’s workload where offices in Sydney and Melbourne are experiencing unprecedented demand from infrastructure projects.
Queensland and Western Australia also expect growth in infrastructure spend however these states are still suffering from the sharp decline in mining and resources and lack of government funds. South Australia construction and property conditions continue.
The report includes state-by-state commentary on trends and activity in the construction and infrastructure sectors plus tender escalation forecasts.