Australia
Australia & New Zealand combined will see 1.2% to 1.9% GDP growth in the 2nd Q of 2024:
Australia’s commerce friction with China, conflicts in Europe and the Middle East and the recent attacks on shipping that have increased ocean freight costs, has not been beneficial to the Australian and New Zealand construction sectors in the last 6 to 12 months.
The Australian construction industry is forecast to decline by 2% to 3% from last year’s expenditures.
Recent construction bankruptcies is not a particularly positive trend as we move into the 2nd half of 2024.
The Australian home building construction sector is set to contract by 4% to 6% in the remainder of 2024, caused for the most part by high borrowing costs and elevated construction prices.
The size of the New Zealand construction market is estimated to be in the $55 to $60 billion in 2024, construction activity is expected to remain similar to 2023.
Overseas – ocean freight costs have started to trend downwards, the importation of construction materials and capital goods into both Australia and New Zealand is a significant cost item to both countries.
