The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
16
print
Print
ResidentialRenee McKeownThu 23 Apr 20

Outlook on Construction Activity Turns Negative: Moody’s

eee2b434-7552-44cb-9837-b56298005013

Construction activity is expected to decline further in Australia during this year, following a 2.9 per cent drop in late 2019 according to Moody’s Investors Service and the Australian Bureau of Statistics.

For the first time since 2017 the global construction industry outlook changed to negative on the back of coronavirus disruptions, slowing economic growth, and low oil prices according to Moody’s analysts.

This comes off the back of the latest ABS report for December which showed the value of new residential building work done fell 4.3 per cent while non-residential work seasonally-adjusted fell 3.6 per cent following a rise of 8.2 per cent in the September quarter.

The impacts of the summer bushfires were yet to have an impact on the quarterly results which were expected to hurt the start of 2020.

Revenue for most construction companies was expected to decline in 2020 as Covid-19 related disruptions affected the economy according to Moody’s.

The analysts said in Australia construction activity was expected to decline even though the government has not mandated work stoppages.

Related: Construction Industry Calls for Further Covid-19 Stimulus, Relief

Residential construction projects started in Australia

Source: Australian Bureau of Statistics

“While we expect private construction activity to soften in the next 12 months, we expect the pipeline of infrastructure projects to proceed,” the report said.

“But we also expect continued delays in large infrastructure projects given supply chain disruptions and constraints on mobilising personnel at construction sites given social distancing laws and requirements for self-quarantine.”

They found energy and mining projects would fair better they were still likely to see delays and would have to deal with lower oil and commodity prices.

Contracting global economies would also affect future bidding opportunities and backlog growth with lockdown and social distancing raising the risk of project delays and cancellations.

However, Moody’s said in China construction activity had resumed on key infrastructure projects and the country was on track to recover much of lost domestic revenue.

This was aided by increased spending on infrastructure and strong order backlogs for companies.

Moody’s global outlook could change back to positive if rated companies revenue turned around in the next 12-18 months.

ResidentialInfrastructureAustraliaConstructionFinanceConstructionProject
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
One New Zealand Stadium BESIX Watpac
Exclusive

Rising to a Challenge: How BESIX Watpac Topped Australia’s Builders

Clare Burnett
7 Min
View All >
Brekky Creek Highrise DA Approval hero
Development

Historic Brekky Creek Hotel’s Highrise Neighbour Greenlit

Phil Bartsch
Sponsored

RWC Retail Moves $30m in Regional IGA Sales

Partner Content
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
The $31.5-million deal to amalgamate 73 strata-titled apartments cements Sydney as the co-living capital of Australia…
LATEST
Brekky Creek Highrise DA Approval hero
Development

Historic Brekky Creek Hotel’s Highrise Neighbour Greenlit

Phil Bartsch
3 Min
Retail

RWC Retail Moves $30m in Regional IGA Sales

Partner Content
2 Min
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
NDH Property Group, a joint venture partnership between Evri Group and KDN, plans for two 13-storey towers in part 2b of the linq development.
Residential

Next Stage of Belconnen Precinct Goes Public

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/covid-19-sends-construction-activity-from-bad-to-worse