NSW leads National Building Boom

NSW leads National Building Boom

  ... comments by CommSec's Savanth Sebastian

Consumer confidence: The Westpac/Melbourne Institute survey of consumer sentiment rose by 0.1 percent in January to 97.4. The confidence index is up 0.1 percent on a year ago.

Dwelling starts: Starts fell by 2.8 percent in the September quarter after falling by 7.2 percent in the June quarter. Building work done fell by 5.5 percent in the quarter to be up 1.4 percent on the year.

As at the September quarter, a record 218,297 homes were being built, up 12.1 per cent on a year ago.

In the year to September, dwelling starts were at record highs in NSW (70,326) and 79 percent above the decade average. In Queensland starts were at 21-year highs (49,939) and 36 percent above decade averages.

The consumer confidence figures have implications for finance providers, retailers, and companies dependent on consumer and business spending. Building & building material companies are affected by dwelling starts including Boral, James Hardie, Adelaide Brighton, Brickworks, AV Jennings Limited, Devine Limited and Beacon Lighting.

What does it all mean?

The latest monthly reading on consumer sentiment suggests consumers are non-plussed about life.

But the more timely Roy Morgan weekly survey suggest consumers are super chipper about the current environment. In addition the monthly consumer sentiment reading suggests that sentiment lifted by between 1.9 percent and 7.4 percent across the major capital cities, yet the overall reading only lifted by a sedate 0.1 percent. 

      Savanth Sebastian

Source  :  http://www.propertyobserver.com.au/forward-planning/advice-and-hot-topics/64138-nsw-leads-national-building-boom-commsec-s-savanth-sebastian.html?utm_source=Property+Observer+List&utm_campaign=4c9dea728e-SUMMER_EMAIL_CAMPAIGN_2017_01_19&utm_medium=email&utm_term=0_a523fbfccb-4c9dea728e-245348873

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