Builders fear slowdown
CONFIDENCE in the Queensland economy and building industry has hit a wall, dropping into negative territory for the first time in more than three years, according to Master Builders latest Survey of Industry Conditions for the March 2016 quarter.
Master Builders deputy executive director Paul Bidwell said the results reflected the easing of recent building approvals which have moved off their peak.
“Much of the state has experienced a slowdown but encouragingly the survey results show that most respondents expect the economic outlook to remain stable for the coming 12 months,” Mr Bidwell said.
“However there is a growing number of respondents who hold a more pessimistic outlook for the future, with nearly one-in-three respondents who expect the economic outlook to deteriorate.”
Mr Bidwell said low levels of demand were the most critical constraint on business growth; this was is in line with falls in building approvals over the same period and the concentrated nature of the demand which had failed to reach many regions and sectors of the industry.
Builders will be looking closely at the Queensland budget, due to be handed down in a month, for measures that will help make new housing affordable and provide spending commitment for catalytic infrastructure.
The survey is one of the best ways to gauge specific industry expectations and business performance in all regions across Queensland. The report also found: The Gold and Sunshine coasts now stand alone in maintaining a strong performance.
Central Queensland had an improved quarter, moving off a low base and Far North Queensland continues as the stand out among the regions.
Greater Brisbane has come off its high as the demand for new unit construction begins to peak.
North Queensland and Wide Bay have slumped and joined Darling Downs & South West Queensland and Mackay and Whitsunday in a struggle to find sufficient demand.
Overall, while many of the regions struggled through the March quarter they all remain confident that there will be a return to stronger conditions for the coming three months.
Much of the state has experienced a slowdown but encouragingly the survey results show that most respondents expect the economic outlook to remain stable for the coming 12 months. — Paul Bidwell