After 18 months of sustained growth in cost pressures, Australian construction firms finally saw some signs of moderation in the December quarter as input costs increased by just 2.2% – the slowest quarterly growth since March 2021.
Key call outs:
- Early payment requests from subcontractors in the construction industry increased by 45% during the December quarter
- The proportion of claims being brought forward by subcontractors almost doubled
- Construction input costs showed signs of moderating, increasing by 2.2% during the quarter – the smallest quarterly increase since March 2021
- Skilled labour remains a significant risk to the industry, with 29% of construction firms reporting vacancies