Residential construction 'looking shaky': NAB
The 2016 December quarter showed lower conditions for residential construction nationwide according to the latest NAB Quarterly Business Survey.
The survey said this downturn may reflect concerns relating to costs and apartment oversupply.
"Business conditions for the construction industry took a step back in the December quarter, driven by a deterioration in non-residential building – which had previously been surprisingly strong," it said.
"Conditions elsewhere in the construction sub-industries were relatively steady, but continue to show somewhat weaker-than-expected conditions for residential construction – perhaps reflecting concerns about costs and an oversupply of apartments.
"As expected, engineering construction conditions remain weak, in line with falling mining investment, although the trend has been positive – the commodity price rally may have also contributed to improvements in confidence for the sub-sector."
