Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Construction activity declines further, unlikely to pick up soon

Staff Reporter 3 minute read

The already tight supply of residential dwellings is set to contract further as construction activity continues to decline.

The Australian Industry Group/Housing Industry Association (HIA) Performance of Construction Index (PCI) declined for the fourth consecutive month in June to 40.3 per cent, the groups revealed today.

An index reading of 50 points is needed to separate expansion from contraction.

Tony Pensabene, Australian Industry Group associate director of economics and research, said the results confirmed the intense pressures the construction sector was under from high interest rates and tighter liquidity.

Advertisement
Advertisement

These pressures are likely to ensure construction remains flat for some time, said Harley Dale, HIA's chief economist.

“The 2008/09 financial year will be a flat one at best for new residential construction and this situation will place further pressure on already tight rental markets, among other negative impacts,” Mr Dale said.

Published: 07-07-08

Construction activity declines further, unlikely to pick up soon
default
TheAdviser logo

The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day

PROMOTED CONTENT


default

 

more from the adviser
David Hyman

Breaking News

Brokers promote competition in lending: Lendi

Brokers are driving competition in the mortgages sector and chang...

money au ta

Breaking News

SME fintech closes $25m raise to fund expansion

An SME lender has raised $25 million in equity to fund the ‘rap...

loan application

Breaking News

Hot Property: The biggest property headlines from the week 26 to 30 July

The weekly round-up of the biggest news stories from across Momen...