New figures from GlobalData show that the construction sector in Australasia is healthier than in most other regions and is continuing to improve.
Australasia has received an overall score of 0.98 in GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts Australasia in second place out of 11 regions, and is an increase on its score from December 2021 (0.85) when it also ranked in second place.
One reason for Australasia's relatively good performance in the index is its infrastructure sector, which scores 1.25, putting it in first place out of 11 regions worldwide.
Australasia's residential sector, by contrast, has performed somewhat worse, with a score of 0.46 (putting it in ninth place globally).
Within Australasia, construction projects are proceeding with fewest obstacles in Australia, which scores 1.02 in the index. The situation in New Zealand, however, is somewhat less positive with a score of 0.49.
The improving health of the construction pipeline in Australasia is partly due to the resolution of issues in the region's energy and utilities sector, which has seen its score in GlobalData's Construction Project Momentum Index move from 0.79 in December 2021 to 0.98 in January 2022.
The construction sector is also seeing fewer and fewer problems in Australia, which has seen its score in the index go from 0.85 in December 2021 to 1.02 in January 2022.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project's scope.
Events that can increase a project's score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
As well as a global overview of the Construction Project Momentum Index, Investment Monitor has broken down our coverage on a regional basis: