Construction activity fell substantially in June for the first time in several months, as a shortage of materials collides withActivity in housing, apartment and commercial construction fell 4.3, 4.5 and 8.4 points respectively compared to May, a construction performance index revealed, while the sector as a whole contracted.
“The effect of rising interest rates was evident across house building and apartments as builders reported a drop in enquiries and new orders,” Mr Wilson said.“Capacity it still high, so we aren’t seeing [a slowdown] yet, but this [index result] shows that we’re seeing a slowing in construction as a result of the RBA changes, which is exactly how they work.”
HIA senior economist Nicholas Ward added that while interest rate rises would eventually “bite” in the construction industry, builders would still be “very busy this year and next year” because of “a big pipeline” of work., but we won’t really see the effect of that for another year or so just because there’s a record number of projects currently under way and then there’s a lot signed but not commenced.
This is good to weed out crap builders from the rest, too many monkeys with hammers about
Concrete price up 25% and difficult to find. Major high rises are stalled in construction. Source: multiple on the ground, Vancouver BC.
Workers and materials shortages being a problem, so are trading construction companies.
And how about the failing / bankrupt builders which is now a daily event...
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