Construction woes weigh on index

illion’s latest business expectations survey has confirmed a cooling economic outlook. The composite expectations index fell to its weakest level since the December quarter 2017, while the actuals index dipped to its lowest level since the September quarter 2017.

“The construction sector appears to be on the cusp of a slowing in activity. A decline in dwelling construction activity and the pull-back in non-residential investment are starting to weigh on actual and expected capital expenditure in construction. Credit for property developers has also tightened appreciably since around the middle of 2018 and this is feeding into a concerning outlook for the construction sector.”

illion Economic Adviser, Stephen Koukoulas