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ISCOVER
Staff Reporter
The building industry has called on the government to inject much needed stimulus into the construction sector.
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In a national survey of more than 400 builders and contractors, Master Builders Australia found that conditions in the construction sector were not expected to improve this year, despite the likelihood of further rate cuts.
According to the industry association, the 175 basis points cut from the cash rate had done little to stimulate the sector, with new data revealing that conditions deteriorated in the December 2012 quarter, with reduced sales and profitability likely to drive workforce reductions.
“There is room for some targeted, short-term fiscal initiatives, which could be advantageous in conjunction with further rate cuts,” Master Builders Australia chief economist Peter Jones said.
Mr Jones added that with the mining sector slowing, the need to stimulate activity in other parts of the economy is likely to intensify as the year unfolds.
