Building and construction industry leads rising optimism about prospects for the Victorian economy

VICTORIA's building and construction industry is the most optimistic of surveyed sectors about prospects for the Victorian economy in the year ahead, according to the latest VECCI - Bank of Melbourne survey of business trends and prospects.

The state-wide survey of more than 400 businesses across seven major industry sectors found that 38 per cent of Victorian building and construction businesses expect an improvement in the state’s economic conditions in 2014, the highest of all surveyed sectors.

This optimism was also reflected in their views on the national economy, with 42 per cent of building and construction respondents expecting the Australian economy to strengthen over the next 12 months.

In the June quarter, the building and construction sector reported a visible improvement in trading conditions, with sales, selling prices, general business conditions and exports all strengthening. However, the sector also reported wages growth and increases in other labour costs, which are expected to continue in the September quarter.

The optimistic outlook and performance of the building and construction sector appears to reflect a positive reaction to major infrastructure announcements in the recent state and federal budgets, along with the gathering momentum in housing construction that has characterised the first half of 2014.

“Meeting Victoria’s infrastructure needs and supporting a competitive building and construction industry is vital to driving new jobs growth," says VECCI Chief Executive Mark Stone.

“The challenge for policy makers is to accelerate industry activity with further measures that spur new investment and employment. Key priorities must be to lower business taxes, cut red tape, improve industry skills and leverage new export opportunities.”

Bank of Melbourne Chief Executive Scott Tanner says there is a need to prioritise the infrastructure that will support Victoria’s growing population and maintain the state’s reputation as a great place to live and work.

“As our population grows, there’s an urgent need to get the critical projects right to maintain our liveability, lift our productivity and improve competitiveness,” he says.

"That means getting the infrastructure we’ve already got to work harder for us, and being smart about building for the future.”

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VECCI & Bank of Melbourne partnership 
VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly Survey of Business Trends and Prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.

Background – About VECCI
The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the peak body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.
www.vecci.org.au

Background – About Bank of Melbourne
Bank of Melbourne is helping build a better Victoria. Since launching in July 2011, the bank has tripled its workforce, opened 89 branches and become more involved in the local community. The bank partners with Victorian organisations and events including the MCG and Melbourne Food and Wine Festival and supports industry with initiatives including Agenda Victoria. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au