Report shows construction industry is set to rise again in 2014

Australia's construction industry went through a slump in 2012, and even though it may not jump back as much as experts thought it would in 2013, next year looks to be a good time for the sector.

According to the latest Australia Infrastructure Report Q4 2013, released by Fast Market Research, expert forecasts for construction industry growth in 2013 have fallen to 2.6 per cent compared to the previously stated 3 per cent. This came as worse construction data was reported throughout the first three quarters of the year.

However, the group maintained its forecast for 3.3 per cent growth in 2014. This was mostly due to the current monetary conditions that are favourable for contractors, positive news out of the homebuilding segment, more opportunity for new investment and several projects in the works.

However, there will still be headwinds. China's slowing economy, wariness among investors who are closely watching falling commodity prices and uncertainty among some state governments could still pose problems for the sector.

"That said, we still believe that construction activity in Australia could improve from levels seen in 2012 over the nearterm," the group concluded.