Australian industrial peak bodies have anticipated that the latest interest rate hike will drive down demand in the construction industry, with the residential sector expected to be significantly affected.
The Australian Industry Group and Housing Industry Association’s performance of construction index for April dropped by 0.6 points to 55.9.
A score above 50 indicates an expansion in construction activity, while a score below 50 indicates a contraction.
Australian Industry Group’s chief policy advisor Peter Burn said that although the growth of new construction orders in April was more significant than in March, the industry was adversely affected by materials and labour shortages and rising input costs.
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