The release of Tuesday’s poor new homes sales data from the Housing Industry Association (HIA) turned attention back to Australia’s construction industry, which appears to be facing recession (if not already there). On an rolling annual basis, new home sales have hit their lowest level in more than a decade after falling for two straight years:
The news follows recent dwelling construction data, which is fast approaching Global Financial Crisis lows:
When combined with the recent cancellation of planned mining investments, it is clear that employment in the construction industry, which has already been shedding jobs, will soon take another hit:
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
