Confidence among construction companies rebounds from a year ago, a new survey says
The mood and confidence of the building and infrastructure sectors has lifted since a year ago says engineering firm Aecom.
Aecom puts that down in part to more familiarity with the new coalition Government and its approaches to issues that affect the sectors, it said in its Sentiment: Infrastructure And Building Construction Survey, New Zealand 2019.
It contrasts with the overall fall in general business confidence revealed in The Quarterly Survey of Business Opinion (QSBO) for the June quarter.
Aecom said the Government's announcement on May 9 of a new infrastructure pipeline tool to show what work would be delivered by Government agencies over the next five years was welcome and provided greater transparency and more certainty to the sectors for future resource planning. About $6.1 billion was in the pipeline.
In the building sector 57 per cent expected spending to increase with another 23 per cent expecting it to remain steady.
The rebound had made up all the ground lost from last year's dip and in some areas there were higher expectations of levels of work than in 2017.
Whether that was the result of reduced uncertainty or due to the conduct of the Government was "perhaps" up for debate, the report said.
Confidence was highest in Auckland where companies were expecting building work in health and education and the refurbishment of existing buildings.
The lift in optimism about work in the infrastructure sector was not confined to Auckland, but had risen in all the main regions, like Wellington, Christchurch and Waikato-Bay of Plenty.
Similarly for investment and delivery of new buildings, respondents were more optimistic in all regions than last year.
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