Over the last 20 years, value added in volume terms grew on average by 3.9% per year. Some peaks and troughs are evident in the data. This may have been due to factors such as changing interest rates, property speculation and the early 1990s recession. The easing of interest rates in the latter half of the 1990s and building activity associated with the Sydney Olympics may have contributed to stronger growth in Construction output. The fall in output in 2000-01 was substantially due to building activity being brought forward to counter the introduction of the GST. When the GST was introduced value added fell by 14%. Since 2001-02 value added has grown strongly (figure 7.3).
7.3 Construction outputs and inputs,
(2004-05 = 100)
The growth in the value of work done in volume terms for building construction and non-building construction is presented in figure 7.4. The figure shows non-building construction value of work done increasing gradually over the 1990s, with growth accelerating from 2001-02. The value of work done for the building construction industry grew more moderately with no growth over the last few years. In terms of relative size, the respective current price shares of the two industries were 66% for building construction and 34% for non-building construction in 1987-88. In 2005-06 these shares had changed to 59% for building construction and 41% for non-building construction.
7.4 Value of work done in Building construction and Non-building construction,
(2004-05 = 100)