Construction Industry shows growth in January

The construction industry has shown the strongest growth in two years, moving from a long period of contraction according to the latest report by the Australian Industry Group.

The report based on a survey of 120 companies, the report states that

“The national construction industry expanded in January driven by a stronger rate of increase in house building and improved conditions in the apartment, engineering and commercial building sectors.”

Whilst the January 2010 construction index published by Australian Industry Group showed expansion in January 2008, it represented the top of the cycle with the completion of projects at that time, but sector had been slowing and showing weak demand since 2006.

The Global Financial Crisis effectively put a hold to new development in late 2008 and 2009, with uncertainty and credit restrictions. The news of growth in demand and activity, if it continues, will be welcome news to the construction industry.