Australia’s mining sector passing its peak investment period is weighing down on engineering and construction works.
The value of engineering and construction work commenced in the three months to December has dropped a huge 20% compared to the September quarter.
The Australian Bureau of Statistics Engineering and Construction data for the December quarter noted the value of work started over the period was $16.6 billion, or 19.9% lower than the previous quarter.
While the drop is not unexpected, it signals the transition of Australia’s mining sector out of a construction phase and into a production focussed sector.
As the value of projects drops more construction jobs will go and it is expected the unemployment level will rise over the next six to twelve months.