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Residential building confidence hits six-year high

by Staff Reporter9 minute read
The Adviser

Construction confidence has grown during the past 12 months, with plenty of work in the pipeline, according to new data.

Master Builders Australia’s latest survey of building and construction found that builders have become more confident about business conditions and less gloomy about profit forecasts.

Industry business conditions rose from 43.3 to 56.9 during 2013/2014 and personal business conditions jumped from 48.8 to 61.9.

The sales index increased from 37.3 to 47.1, while the profits index grew from 38.1 to 49.9.


Indices are calculated by taking the difference between the percentage of respondents nominating a rise and those nominating a fall. A reading of 50 indicates no change.

During the January–June period, the index measuring conditions in the residential sector increased from 47.2 to 63.5, although residential expectations fell from 67.5 to 66.3.

Non-residential conditions climbed from 41.3 to 49.2 and non-residential expectations grew from 55.6 to 56.2.

Master Builders Australia said building activity is set to continue gaining strength on the back of improved confidence in residential building, which is the highest it has been for six years.

“The survey’s key indicators show that a good pipeline of work underpins current confidence levels and supports Master Builders’ forecast that total dwelling commencements will exceed 200,000 by 2017,” it said.

[Related: Master Builders calls for more bank competition]

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