Global Power | Local Knowledge | Uniquely Personal

RBA predicts construction growth

Higher consumer confidence in the property market could signal growth in the construction sector.
<div $$hash="6743-0"><p $$hash="6742-0">The Reserve Bank of Australia (RBA) expects that there will be growth in the construction sector later this year as the housing market has been strengthening.



<p $$hash="6745-0">In a speech to the Australian Institute of Building, assistant governor Christopher Kent said that he expects demand in the construction sector to increase as consumer confidence in the housing market rises.



<p $$hash="6756-0">Mr Kent quoted recent information that had shown growth in the housing sector. Earlier reports from RP Data and the Real Estate Institute of Australia showed that house prices have been rising in recent months. Meanwhile, weekend clearance auctions had seen high rates of sales.



<p $$hash="6754-0">He said that increased consumer confidence is due in part to the rate cuts from the RBA, which in turn has driven mortgage interest rates down.



<p $$hash="6747-0">There have been concerns about business in the construction sector, as building approvals had fallen in recent months.



<p $$hash="6751-0">The Australian Bureau of Statistics (ABS) reported that there had been a 2.4 per cent decrease in new build approvals in January following on from a 1.7 drop in December.



<p $$hash="6750-0">Posted by Steve Douglas

DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact

Subscribe Now