news.com.au: Builders worried as stimulus fades

BUILDERS are worried there will not be enough private sector work available when the Federal Government stimulus programs end.
Releasing the latest Master Builders Australia (MBA) national survey, chief economist Peter Jones has also warned of anecdotal evidence of uncertainty in the industry due to the government's proposed carbon tax.
"The survey shows work on builders' books holding up reasonably well in the June quarter, but it remains to be seen for how long this can continue given the winding down of stimulus projects and a less than positive outlook for new work," Mr Jones said today.

Building stimulus measures introduced during the height of the global financial crisis included the school halls and social housing projects.
The survey indicated that there was no sign of an upswing in residential building conditions.
At an index of 48.4 points in the June quarter, down from 51.4 in the previous quarter and below the 50 mark, it suggests that residential building conditions will be slightly softer in the next six months than the previous six months.
The index representing builders' own current business conditions also eased, but held above the 50 satisfactory market, moving to 55.7 in the June quarter from 56.3 in the March quarter.
But builders sentiment held up at 56 points.
Profitability slipped and sales stayed weak, while hiring plans suggested that workforce is likely to remain essentially unchanged in the period ahead.
The survey also found that 26.6 per cent of respondents were concerned about the availability of finance having a constraining effect on their business, only a modest improvement on the previous quarter.
"Interest rate speculation continues to hang over the industry, with the risk of heavy-handed interest rate policy still a real threat to all sectors of building an construction," Mr Jones said.
"With large parts of the building and construction industry doing it tough, the Reserve Bank should keep interest rates on hold until a private sector recovery is able to gain momentum."
The central bank holds its monthly board meeting tomorrow, but economists expect it to keep the cash rate at 4.75 per cent for another month.
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