You heard the RBA say that housing construction is important to Australia’s economic transition.
You’ve seen the Housing Industry Association predictions that housing construction in the years ahead is going to be very strong.
Until now construction in Australia has been stuck in the contraction zone.
Not any more.
The Australian Industry Group (AiG) and Housing Industry Association’s Performance of Construction Index out this morning printed 51.8, for a seasonally adjusted rise of 5.1 points in June.
That’s a solid result and shows that monetary policy was working before the budget and hopefully – as both UBS and Westpac suggested over the weekend – be strong enough to keep the economy on an even keel.
HIA Economist Diwa Hopkins said:
Underscoring this improvement has been residential construction activity, with house building in particular remaining a continuing source of strength – June represented the tenth consecutive month of growth in activity for this sub-sector of construction. While the pipeline of infrastructure work on the east coast is boosting conditions in engineering construction, commercial construction still remains a weak area within the broader industry – its sub-index is yet to indicate that a sustained expansion is underway.
Great news for the economy.