Investment 'marginally bigger' PDF Print E-mail
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Monday, 12 November 2012 08:00

The value of investment projects grew by more than $6 billion during the September quarter despite the backdrop of a difficult global environment, an independent forecaster says.

However, Deloitte Access Economics' latest Investment Monitor said with the construction boom likely to peak in mid 2014, the value of projects in the planning stage fell by almost $11 billion during the same period.

"Some of those (projects) on the drawing board may be further from the green light now than they were three months or six months ago, given the downturn in global commodity prices and concerns over China's development path in the short term," Deloitte partner David Rumbens said.

But he still described the volume of mining work underway at present as "astounding".

The Deloitte report shows that total investment at all stages of development grew $6.2 billion, or 0.7 per cent, in the September quarter, compared to three months earlier to $926,713 billion.

This was 3.7 per cent higher than a year ago.

Of these investment projects, those in planning - under construction or possible - declined by $10.6 billion to $465 billion.

Western Australia and Queensland continued to lead the way in terms of the value, accounting for more than half of all projects.

"In contrast, the share of projects contributed by New South Wales and Victoria continues to slide, now accounting for around 17 per cent of total projects," Mr Rumbens said.

Outside of mining, Mr Rumbens said there was a notable investment agenda for economic infrastructure, including the roll-out of the NBN, as well as major energy, transport and port projects.

"The latter will help to support an expected lift in export volumes over the medium term following the expansion of mine capacity, though some of these projects are also at risk in the current environment," he said.

Non-residential building activity has been lacklustre with no immediate prospects of an improvement due to soft retail turnover, little white collar jobs growth and weak business and consumer confidence, he said.

 



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