The fall in building and construction work done in the December quarter is consistent with reports of poor industry conditions, according to Master Builders Australia, the peak body for the industry.
Mr Peter Jones, Master Builders Australia’s Chief Economist said, “With major parts of the industry caught in the slow lane of the two speed economy, the RBA needs to cut rates further.”
He said, “Today’s figures confirm evidence from Master Builders’ latest survey showing builders expect industry activity to fall as trading conditions and profitability weaken.”
“The ABS release shows that building work yet to be done and in the ‘pipeline’ suffered a sharp decline in the December quarter, in line with Master Builders’ information that builders are suffering a downturn in sales and enquiries.”
“There is no indication that the negative growth trend firmly established in both the residential and commercial building sectors will turn around without further policy change.”