Building and construction forecasts implicitly positive, says MBA

Forecasts for the building and construction industries are positive, albeit with some "significant headwinds", according to Master Builders Australia (MBA).

In the three year forecast period to 2015-16, MBA has suggested that there is a light at the end of the tunnel, but this does not necessarily mean a return to previous levels.

MBA chief economist Peter Jones said: "The key risks to the forecasts are frail consumer confidence, economic uncertainty, asset price volatility and ongoing softness in the labour market."

Provided those risks do not eventuate in a significant manner, MBA predicts the value of residential construction work done will grow from $46.2 billion in 2012-13 to $60.9 billion in 2015-16.

Engineering construction predictions suggest a small increase to $122.1 billion in 2012-13 before a 12 per cent fall to $108 billion in the following years.

"Master Builders, in forecasting improvement in building industry conditions, reinforces its call for ongoing microeconomic reforms at all levels of government in order to underpin the length and strength of the recovery.

"This will allow the industry to enter a sustained recovery and reclaim its role as one of the economy's key drivers," concluded Mr Jones.