Report predicts improved outlook for 2012
Published: 30 January 2012
A gradual improvement in the outlook for Queensland’s building industry is predicted, according to the December 2011 Survey of Industry Conditions report released by Master Builders today.
Master Builders Director of Housing Policy, Paul Bidwell said the latest report sees heightened optimism throughout the industry, reflected in the Queensland Outlook Index and Building Industry Outlook Index, which have both entered positive territory for the first time since March 2010.
“While we know the industry faces continued tough times in the first half of 2012, most industry participants are more optimistic about the outlook for 2012,” he said.
“The Building Boost Grant and recent interest rate cuts have certainly contributed to this optimism, although the industry does remain acutely aware that consumer confidence is fragile, particularly in the face of uncertainty in the global economy.
“The report tells us the most critical constraint on business growth in the December quarter was once again the subdued level of demand, with the same list of usual suspects contributing to the softness in demand – weak consumer confidence, the two-speed domestic economy, ongoing concerns about a possible second GFC, stagnant/falling house prices, the looming introduction of the carbon tax and housing affordability.
“However, looking forward, most respondents to our survey were confident that the positives will outweigh the negatives, with conditions expected to further improve during the March quarter, ahead of even stronger conditions in the latter half of 2012.
“Interest rate cuts and work generated by the building boost has recently started to impact positively on housing finance and building approvals figures, so we anticipate some of the pressures associated with these constraints should ease even further.”
Report highlights include:
- Over one third of businesses reported a reduction in the size of their workforce
- The most critical constraint on business growth was the subdued level of demand
- The availability and cost of finance continued to be a serious constraint on construction activity
- 17% of businesses reported an increase in display traffic levels
- 76% of respondents reported three months or less of work on their books.
Master Builders Survey of Industry Conditions report provides information and analysis on industry expectations and business performance, based on a survey of Master Builders members across Queensland.
Media enquiries:
Julie Russell, Manager – Corporate Affairs via email or phone (07) 3225 6436 or 0414 083 191
