An increase in the volume of engineering construction work undertaken has Master Builders Australia confident in the growth of the economy
New data from the Australian Bureau of Statistics has shown a 3.3 per cent increase in the volume of engineering construction work undertaken during the September 2024 quarter.
It was predominantly driven by a 5.5 per cent expansion in public sector projects, while private sector engineering construction work saw a moderate increase of 1.4 per cent during the quarter.
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Master Builders Australia chief economist Shane Garrett says that engineering construction is now one of the economy’s strongest performers, keeping economic growth above the waterline.
“The contribution of public infrastructure work is crucial – activity here is 13.4 per cent higher than a year earlier,” he says.
“Boosting our stock of infrastructure like this means that our economy will have more room to grow over the long term and reduces inflationary pressures re-emerging in the future.”
Master Builders CEO Denita Wawn says that the upcoming federal budget needs to address private sector demand which she believes has been lacking for some time.
“Investment in engineering construction like roads, rail and other critical infrastructure, plays a crucial role in addressing the housing crisis,” Wawn says.
“When the building and construction industry is strong, so too is the economy.”