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