East coast housing boom puts business conditions at a decade high

Business conditions in the building and construction industry continued to improve in the September quarter, with current activity supporting good profits and growth, particularly in the eastern states.

The indicators for work in progress and turnover were particularly positive, driven by the ongoing boom in residential construction work in the south eastern states. But there are other markets, particularly in the Sunbelt states and territories where conditions are more challenging, which are perhaps not reflected in the aggregate index for business conditions.

Business confidence improved in the September quarter, but this may turn out to be the peak in confidence as falling building approvals and a moderation in the real estate market suggests a softer period ahead. The September quarter index score for confidence in the building and construction industry was recorded at 57.4.