New home building still sliding
New building work has fallen continuously for a year now according to the latest Australian Bureau of Statistics (ABS) data.
Residential building activity contracted in the March 2012 quarter, signalling the fourth time in a row this stat has fallen.
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The total value of residential building work fell by 1.9 per cent in the March quarter with new dwellings down by 1.2 per cent and renovations down by 5.5 per cent.
HIA Senior Economist, Dr Andrew Harvey claimed the industry is in recession.
“New residential building work done has now fallen for four consecutive quarters, while renovations work done has fallen for three consecutive quarters.
“Combined with leading indicators which show further weakness ahead, there is no doubt that the Australian home building industry is in recession,” Mr Harvey said.
“As the residential building industry continues to contract, we are seeing real consequences for jobs, small businesses, the supply of new housing and rental costs."
Comparing the March 2012 quarter with the March 2011 quarter, new housing work done is down by 8.7 per cent while renovations, alterations and additions, activity is down by 5.5 per cent.
