This article is about the flucuating state of the construction industry and how at present it is the force of the resources and infrastructure boom that is keeping the industry going strong. In fact construction work increased by 2.3% from last qauter.
It seems at this point the housing sector is the only sector that is really flagging and that is mainly due to the Reserve Bank of Australia's continuining campaign against rising inflation. There has already been two interest rate rises this year and could be another one on the way in the very near future which will inevitably mean even slower months ahead. Unfortunatly this coupled with the rising cost of steel means tough times ahead, especially for smaller builders.
The article:
No real joy for the becalmed home building industry in the latest figures on construction work.
There was some growth in activity in the March quarter, but nowhere near enough to do anything about relieving the pressure on rising rents, house affordability and closing the gap between demand and supply for new homes. Instead the construction work figures showed a rebound in the first three months of the year that was driven by the resources and infrastructure booms...
The above graph shows the fluctuation of construction work from 2002 through to 2007.
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