AusBN - The Reserve Bank of Australia (RBA) has predicted that construction of non-residential buildings will likely provide a timely boost to the country’s economic growth by the end of 2018.
The recent decline in the national mining industry has put extra pressure on Australia’s non-mining business sectors, with RBA believing that investment in these areas will continue ‘gaining momentum’.
In a recent monetary policy meeting of the reserve bank board, the central bank said non-mining business investment rose 5% in the year to September, and recent data collected on approvals of non-residential buildings indicate growth in this area.
The minutes from the meeting also reported: “While non-residential building construction was likely to remain subdued in coming quarters, the increase in approvals over the past year across the range of sectors suggested that non-residential building construction would contribute to GDP growth towards the latter part of the forecast period.”
RBA also said that household consumption growth was likely to remain subdued, with perceptions of personal finances remaining around average.