Building Approvals February 2012
02 April 2012
Australian Bureau of Statistics building approval figures indicate the building and construction sector is not out of the woods yet.
BUILDING APPROVALS AT NEAR RECORD LOWS
Today’s release of the Australian Bureau of Statistics building approval figures for February have not bounced enough to indicate that the building and construction sector is out of the woods yet according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Kerschbaum, MBT’s Executive Director said, “Despite the pick-up in residential approvals for February, the figures are hardly cause for celebration. The 10% increase (in seasonally adjusted terms) for the month of February equates to an annualised figure of less than 2,300 approvals, well down on the last three financial years which each recorded more than 3,000 approvals per annum. This slump of between 25 and 33% is a real concern to the industry and correlates with a downturn in non-residential activity of roughly the same amount.”
Mr Kerschbaum said, “A recent Master Builders Survey showed that business conditions are deteriorating, profitability is under pressure and the pipeline of building work is evaporating. In short, there were very few positives to come out of the survey.”
Mr Kerschbaum concluded, “A broad-based private sector recovery has failed to gain momentum. Confidence is lacking and there is now a strong case for the Reserve Bank to cut rates to underpin the slow lane of the economy. The latest gloomy data highlights the need for urgent reform in the areas of costs, regulatory red tape and microeconomic reform at the state and local level.”
Michael Kerschbaum
Executive Director
(w) 6234 3810 or (m) 0438 343 810
