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Economic Factors Affecting Construction Industry

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The Construction Industry is the third largest industry in Australia behind mining and finance and also produces around 8% of Gross Domestic Product (GDP). In Australia, the construction industry is one of significant driver of economic activities. It is the main infrastructure to the operation of all other industries. It employs over a million people and comprises around 330,000 businesses nationwide. Economic factors, especially, population, growth of income, industry activity, inflation, interest rates, consumer sentiments, and technology changes drive demand for construction industry. The construction industry supports the productivity improvements that are important to future incomes, prosperity and capital stock of Australia. The main …show more content…

When GDP increases, people can get the sufficient money to do building activities and other businesses. The building services and the maintenance business demand will also increase.
(3) Impact assessment of Unemployment The unemployment rate will be affected on the decreased buying rate on building materials and services. The consumers’ purchasing rate, the local banks, landlords, and other small businesses are difficult to survive because of the unemployment.
(4) Impact assessment of Fiscal Policy Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment, and economic growth. The increased demand of the building services and materials to build more buildings will attract more public and private investors to get more profits to build roads and ports. The repair and maintenance works can complete more quickly.
(5) Impact assessment of Monetary …show more content…

Deficit of the project has become a bit 'wider than that of the previous update of mid-year Economic and Fiscal Outlook (MYEFO). This mainly reflects the operation of "automatic stabilizers" that respond to changes in economic conditions. The simplest measure, as a percentage of nominal GDP, according to changes in the underlying cash balance of the year. This measure, the direct effect of the plans outlined in the budget of the Australian government in the next four years, by about 0.5% of the PTS of the annual growth rate of GDP (Chart 9), which would be to weaken the economic activity it

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