Australian Bureau of Statistics figures released yesterday showed that building work yet to be done and in the ‘pipeline’ suffered a sharp decline in the December quarter.
While engineering work surged, all residential and commercial building fell considerably.
The fall in building and construction work done in the December quarter is consistent with reports of poor industry conditions, according to Master Builders Australia.
Peter Jones, Master Builders Australia’s chief economist said: “With major parts of the industry caught in the slow lane of the two speed economy, the RBA needs to cut rates further.”
He said yesterday’s “figures confirm evidence from Master Builders’ latest survey showing builders expect industry activity to fall as trading conditions and profitability weaken.”
They were in line with Master Builders’ information that builders are suffering a downturn in sales and enquiries.
“There is no indication that the negative growth trend firmly established in both the residential and commercial building sectors will turn around without further policy change,” he said.
