A fall in building permits raises concerns that activity in the construction sector is slowing down. This could also lead to a decline in employment in a business which has so far provided many job opportunities for Australians. Demonstrating that we are faced with an economy that runs at different speeds, with the raw materials industry going at full speed and the rest of the country instead struggling, on the eve of the next meeting of the Reserve Bank of Canberra Australia's statistics office revealed that the number of construction approvals fell 7,8% in February, falling to a three-year low. In light of other data, such as the fall in Melbourne home prices (-0,8%) in the last quarter, and average house prices that were flat in the quarter ended March, many analysts expect a cut of the official discount rate.
Harley Dale, chief economist of the Housing Industry Association, argues that these data highlight a continued fall in the number of new home constructions, which already plunged by 13% last year. The situation in construction is closely watched by economists because it is a driving force in the Australian economy employing at least 9% of the total workforce.
http://www.theage.com.au/business/sun-setting-on-new-houses-20120402-1w8rk.html
