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MBA: Fall in building work requires policy change

Master Builders Australia has called the fall in construction work a negative sign.

Master Builders Australia (MBA) has warned that the Australian property building industry could be left in the doldrums without further rate cuts from the Reserve Bank of Australia (RBA).  

It was responding to the latest data from the Australian Bureau of Statistics, which found that construction work fell by 4.6 per cent in the three months up to December, reversing a promising 11.7 per cent jump over the course of the September quarter.  

Peter Jones, MBA's chief economist, said urgent action is needed from banks to prevent the building sector becoming further embroiled in a "two-speed" economy.  

He added that MBA has forecast construction activity to fall based on difficult market conditions and a lack of profitability throughout the industry. 

"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," the chief economist warned.

Posted by Steve Douglas

- MBA, building, interest, rates, construction

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