Building and engineering rates recorded a steady rise in the June quarter but results suggest a widening gap  between building and mining-related construction and engineering work throughout the country.

 

Data released by the Australian Bureau of Statistics (ABS) show that while the sector continues to grow, certain areas, chiefly construction in major urban areas, are not growing as fast as the mining and resources construction sector.

 

HIA Chief Economist, Dr Harley Dale, said that seasonally adjusted residential building work done fell by 4.1 per cent to an annualised level of $45.4 billion in the June 2011 quarter.

 

“New residential building work done fell by 5.4 per cent reflecting a 1.8 per cent decline in detached housing and a slump of 11.9 per cent in ‘Other dwellings’,” Dr Dale said.

 

“The latest figures show parts of the industry struggling, confirming evidence from Master Builders’ latest survey showing a dramatic turnaround in builder sentiment as commercial and residential building-related stimulus spending programs come to an end," Mr Peter Jones, Master Builders Australia’s Chief Economist said

 

“The business environment has become much tougher in recent times, not helped by uncertainty regarding the world economy and share market volatility.”

 

In the June 2011 quarter, seasonally adjusted new residential building work done fell by 13.0 per cent in New South Wales, 9.7 per cent in Western Australia, 7.0 per cent in the Australian Capital Territory, 6.6 per cent in Queensland, 0.3 per cent in Victoria, and 0.2 per cent in Tasmania. New residential building work done increased by 7.9 per cent in South Australia. In original terms new residential building work done in the Northern Territory in the June 2011 quarter was down by 38 per cent when compared to the June quarter of last year.