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RBA predicts construction growt...

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

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