Some positive news from Australia yesterday Australian construction industry picks up.
The Ai Group/Housing Industry Association Performance of Construction Index rose in June to report Australian construction industry growth for the first time this year.
The news is being treated cautiously though. The report puts the reason for expansion down to an unexpected lift in local government and infrastructure projects. It also notes continued decline in mining construction, a weak outlook for the engineering construction sub-sector, and a continued decline in construction employment.
It is interesting to consider how the current Australian experience will impact on the New Zealand industry. A lack of construction jobs in Australia could bring more Kiwis home, particularly given the likelihood of continued demand for skilled workforce arising from the Christchurch rebuild. There is also presumably the potential for greater interest in New Zealand projects from Australian-based construction companies.
[this post was written by Jared Holt]