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Construction sector strengthened by housing finance figures

The construction sector is facing a positive outlook thanks to healthy housing finance figures.

Buoyant housing finance figures in Australia are strengthening the country's construction sector.

Dwelling commitments rose 2.7 per cent in June, according to the Australian Bureau of Statistics, with a 0.9 per cent rise in commissions for new dwellings.

Loans for the construction and purchase of new homes also rose year-on-year, the data showed.

Peter Jones, Master Builders Australia's chief economist, commented on the results and said: "The figures confirm the impact of lower interest rates is starting to be felt in the housing market."

Mr Jones said that the statistics were encouraging; however an increase in new building activity will also tend to mean financial commitments could lag behind by a few months.

He went on to add: "With an upswing in housing finance starting to strengthen, residential builders will welcome a flow through into new building activity where the recovery to date has been unusually tepid."

Posted by Steve Douglas



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