The interest rate cut this week won’t be enough to fix the weak trading conditions facing the building industry, according to Master Builders Australia.
Chief executive officer Wilhelm Harnisch said, “Master Builders’ September quarter national survey reveals just how tough the business environment has become for an industry that has lost the cushioning effect of government stimulus programs.
“Sales and forward orders have fallen away dramatically in the past six to nine months as cautious clients, overseas events and difficulties accessing finance work against any upturn.
He added: “The immediate challenge ahead for the building sector is to restore confidence to drive a private sector recovery in both the housing and commercial building markets”
“The private sector housing recovery has been very weak and the industry is banking its hope on today’s rate cut helping boost confidence to flagging demand and stabilise an uncertain market.”
“The Reserve Bank needs to cut rates further to assist in driving a sustainable recovery in the building industry.”
