The Australian Construction Sector

The construction sector is weakening under pressure from the early stages of what appears to be a sharp downturn in housing construction and signs of a topping out in non-residential construction activity.

There is no question that things are deteriorating in the sector, which appears to be confirmed by share market investors who, since the middle of 2018, have been selling construction shares.

The level of public sector infrastructure spending has been strong, but near-term growth may slow as some projects reach completion. Important for the sector will be any new projects in the wake of the Federal election and whether the State and Territory Governments commit to new projects proposed by the Commonwealth Government.

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