Mining industry to serve Aussie economy, consultancy says
Abundant investment in Australia's mining industry will prompt the nation's economy to pick up the pace of its development and recovery from the recession, according to the projection of an independent forecaster.
The Sydney Morning Herald reports enhanced production capacity and mine optimization will occur later this financial year and next year, per the expectations of the business outlook authored by Deloitte Access Economics for its March quarter. The division under eye is the resource sector as the firm also noted consumer spending needs a lift.
Slow-paced consumerism due to decreased spending and tepid housing starts, the Australian dollar is high and interest rate levels are minimizing potential.
"It may be a lopsided period in Australian growth, but growth it will be," director Chris Richardson indicated in statement released in Australia on Tuesday. "And the split in that growth is widening further."
He said capital spending potential is geared toward investment in mining and corrections were increased for the industry as compared to one quarter prior.
By contrast, sectors like retail, construction of houses and government spending were corrected downward in value.
"Yet that doesn't stop the overall outlook for growth - the one on which the Reserve Bank has to act - still looking rather better than most people realize," according to Richardson.
The Australian reports the strength of mining will have staying power.
That business investment in mining amounts to an estimated $180 billion in Australian currency, the majority of which is oriented toward ongoing mining projects in Queensland, the nation's western lands and offshore.