BCI MEDIA GROUP RELEASES CONSTRUCTION REVIEW FOR MONTHS AHEAD – SPARSE AND INCONSISTENT, NO GROWTH

The short-term forecast for the Australian construction market for February-April 2013 shows $16.8 billion in total construction starts. In contrast, the previous three months, November 2012-January 2013, was $16.7 billion. This is an increase of one per cent.

The long-term trend shows total construction starts in Australia at -2% (when contrasting the value of 12 months’ construction starts against the corresponding 12-month period a year earlier).

The Australian construction market is forecast to continue to trend negatively in the next three months. Whilst there are individual pockets of strength, they are the cause of large-scale individual projects commencing, rather than any strong overall market trend.

While civil construction activity continues to persevere, the first signs are emerging in the market of a decrease in starts. This is a strong indication that 2013 will be the peak in civil construction.  Both construction activity and construction starts are trending to shrink by the end of the year. The civil construction starts long-term trend in Australia is currently at -5% (when contrasting the value of 12 month’s construction starts against the corresponding 12-month period a year earlier).

Damian Eastman, COO of BCI Media Group, said, “With nine months of federal election campaigning ahead of us, it is unlikely there will be any major change in market sentiment in the immediate future”.