Residential construction hardest hit by slowdowns
By
Adam Smith
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8/09/2011 3:00:00 AM
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Housing construction has hit a record low amid weak activity across the entire construction industry, it has been claimed.
The Australian Industry Group Performance of Construction Index, performed in conjunction with the Housing Industry Association, has seen its weakest result in nearly two-and-a-half years. The Index dropped four points to 32.1. Any score below 50 indicates a contraction in construction activity, and the Index has now tracked below 50 for 15 consecutive months.
Residential construction showed particular weakness in the Index. House building recorded a reading of 29.6, with apartment building tracking even lower at 25.2. HIA chief economist Harley Dale said housing construction has followed a trend of decline throughout the latter half of the year.
"The significant deterioration in home building conditions is clearly continuing unabated in the second half of 2011. The fall in the new orders sub-index to a record low in August is just one example of the accelerated weakness that has hit the industry from the middle of this year," Dale commented.
Australian Industry Group director of public policy Peter Burn indicated that declines in construction had filtered across the economy, as falling employment in the sector impacted consumer spending.
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loanman on
08 Sep 2011 12:02 PM
Now that the easy overly profitable sales are gone, we might see the construction industry become a little more competitive and stop bleeding taxpayers by requesting all sorts of government grants