Deloitte: The Switch From Mining Investment To The Rest Of The Economy Is On Track

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Australia’s transition through the third phase of the mining boom is on track, according to the latest Deloitte Access Economics Investment Monitor report.

Mining-related construction work is fading but bulk commodity exports are breaking records.

At the same time, low interest rates are underpinning a better performance from the nation’s retailers as well as a recovery in the residential construction sector.

Yet while production is growing at trend rates, income growth is limping from a sharp fall in commodity prices.

That pressure is likely to worsen as mining-related construction activity subsides, and may weigh negatively on future growth in retail sales and overall consumer spending activity, Deloitte Access Economics says.

The value of all projects in the database increased by $39 billion in the September quarter to $914.4 billion.

That represents a 4.4% increase from the June quarter of 2014 and is 4.7% above the level recorded a year earlier.

The value of definite projects in the database (those under construction or committed) increased by over $30 billion compared to the June quarter of 2014, offsetting much of the decline recorded earlier in the year.

Overall, the value of definite projects in the database increased by 6.9% compared to the June quarter, though remains 1.2% below the level recorded a year ago.

The value of planned projects in the database, those under consideration or possible, also made ground during the September quarter, up by around $9 billion.

A number of large new projects entered the database.

These are led by the $3 billion Carrapateena Project, set the develop one of Australia’s largest copper deposits in northern South Australia, with a feasibility study due in 2015.

Meanwhile, a $200 million office building has been proposed for Southbank in Melbourne.

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