Why mining shouldn’t shoulder all the blame for construction’s woes

Construction activity has taken a major hit from the decline in mining investment, but a lack of public sector spending is also increasingly weighing on the sector.

Mining investment is beginning to collapse but we shouldn’t blame the sector entirely for the recent decline in construction activity. Public sector spending continues to weigh on construction and will subtract from growth during the June quarter. By comparison, private residential and non-residential construction will support growth -- albeit to a lesser degree than earlier this year.

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