Yesterday’s GDP figures for the June 2022 quarter show that Australia’s economy expanded at a healthy pace of +0.9 per cent during the quarter. The economy is now 3.6 per cent bigger than it was a year earlier. Household spending and export growth made the most important contributions to growth.
During the pandemic, building and construction activity was an important source of support for the economy. However, total construction activity dropped by 2.4 per cent during the June 2022 quarter. All major segments suffered declines: residential building (-2.9 per cent), non-residential building (-0.3 per cent) and engineering construction (-3.4 per cent). Both new home building activity (-3.8 per cent) and home renovations work (-1.6 per cent) dropped back during the June 2022 quarter.
For the ACT non-residential building and construction showed the strongest results with +12.6 per cent increase on the same quarter last year (+6.1% of the previous quarter). Total residential building contracted -6.5 per cent on the same quarter last year (+6.5% changes on the previous quarter).
Further information about the state of the ACT building and construction industry will be released shortly in MBA Australia’s construction forecasts.