A new report on the Australian construction sector has confirmed the sector is weakening under pressure from the early stages of a sharp downturn.

illion Economic Adviser Stephen Koukoulas said the construction industry was a key barometer for the broader economy.

“The construction industry is currently in a sharp downturn, with dwelling construction the main concern. By the end of this year, activity in residential is likely to weaken further. With recent and predicted interest rate cuts and non-residential construction expected to edge higher over the medium term, by 2020 we should reach the bottom of this cycle,” Mr Koukoulas said.

illion Construction Sector Specialist Rukan Zaman said the industry was in denial. “Our latest illion Business Expectations Survey shows a sharp slump in actual construction activity, below expected activity. Expectations in the sector have been more positive than actual performance,” he said.

“Don’t be one of those people who denies there is a problem. Ask illion how we can help you to make sure you survive the downturn and get your business into the best possible place to move forward,” said Mr Zaman.