Doom and Gloom. Talk of a Recession.

[southee]

From MBA webpage :

Building Approvals do not Herald Recovery
Written by: Peter Jones, Chief Economist, 31 Jul 2012


Approvals figures released today by the Australian Bureau of Statistics have been welcomed by the building industry, but do not herald a recovery.


After a sharp increase in building approvals in May, total dwelling units approved fell back only 2.5 per cent in June, seasonally adjusted.


Chief Economist for Master Builders Australia, Peter Jones said the figures for the past two months are a welcome sign that the disastrous slide in approvals may be coming to an end.


“However, the building industry remains in survival mode and conditions in the residential sector are extremely difficult.

“While the trend in building approvals has turned positive, the actual level of activity remains in the doldrums. The annual building approvals figure of 145,000 dwellings needs to increase by at least 30,000 dwellings just to keep pace with housing needs related to Australia’s population growth.


“Today’s figures taken together with previous results are certainly welcome, but any recovery for the industry is still likely to be many months away and would be coming from an extremely low base.


“While there may be some movement in the forward indicators, this is very little comfort for builders in survival mode with little work on the books right now,” Mr Jones concluded.


Spin hey Fish????

[heater31]

I make no apologies for asking people to verify their posts if I think they're spinning some porky's.

Obviously don't pay attention to the monthly updates on interest rates & building approval rates.

Not only are the current Adelaide builders competing for work they also have interstate builders moving into the market place.

I work for a large Adelaide based home builder and I haven't received a pay rise in 3 years despite my workload increasing due to other staff leaving. Having said that the volume of work has halved as well.

Land values have a lot to answer for with some of the jobs that come across my desk they pay more for the dirt than the bloody bricks and mortar

[Sojourner]

The construction industry in this State peaked 26 months ago. Been in decline ever since. Neither party in this State seem to have policy ideas directed toward addressing the issue.

One of the positives from the building of the Royal Adelaide Hospital is that it is employing a number of people with long term work as the project continues. Here comes the Socialist in me, yet I do think that there is a case for other Capital Works projects to be undertaken to keep people in a job until the economy picks up. The rail loop from the Adelaide Railway station would be a good place to start.

[Psyber]

http://au.finance.yahoo.com/news/bargai ... coast.html

...Take Kris Caris for example, who has just bought back her family’s Gold Coast holiday home for just $381,000, after it had been sold for $1.55 million at the height of the property boom several years earlier.

[White Line Fever]

I think Australia's bubble is about to burst and house prices will fall, jobs lost, no new projects, a lot of industry to be moved offshore and tough times ahead*




Sources
*my brain

[scoob]

I think Australia's bubble is about to burst and house prices will fall, jobs lost, no new projects, a lot of industry to be moved offshore and tough times ahead*




Sources
*my brain

Do you have any proof that you brain said that?

[overloaded]

I think your brain might be spinning porky's, please provide verification

[fish]

Nice one scoob and overloaded - you're learning.

Keep up the good work.

[scoob]

Maybe if you get your head out of the sand fish you may learn something too

From todays indaily...

This morning the NSW government announced it will hold an inquiry into the building industry following the collapse of hundreds of construction companies, leaving thousands of workers and suppliers out of pocket.

NSW is not alone – the building industry in Victoria, South Australia and Tasmania is feeling the pinch.
About 24,000 suppliers and sub-contractors have been left without payment for work during the past few years, with some owed millions of dollars, according to NSW Finance Minister Greg Pearce.

Mr Pearce says hundreds of NSW companies have collapsed since 2009.

“Between 2009 and 2011, hundreds of companies in NSW collapsed owing billions of dollars, slamming the brakes on vital projects and investment,” he said.

In February, building company Kell and Rigby announced it was closing its doors, leaving 500 workers without a job, and hundreds of associated businesses millions of dollars out of pocket.

In the same month, it emerged that Reed Construction was in financial difficulty and unable to pay millions of dollars to more than 50 subcontractors.

Two months later, St Hilliers Ararat, an arm of St Hilliers Construction, went into voluntary administration costing hundreds of jobs and leaving many sub-contractors unpaid.

The collapses have been felt among suppliers on South Australia’s side of the border.

Mr Pearce on Thursday announced a parliamentary inquiry into construction industry insolvency, with a view to reforming the sector and protecting subcontractors.

The inquiry will be headed by former ICAC Commissioner Bruce Collins QC.

The government is yet to provide details of when the inquiry will begin.

The construction union welcomed the inquiry, but said it was concerned it was a knee-jerk reaction.

“We’re majorly concerned that the minister is doing a little bit of politicking on this one,” Construction, Forestry, Mining and Energy Union (CFMEU) state secretary Brian Parker told AAP.

The CFMEU called for the government to include the union in the inquiry.

Mr Parker said the industry required “very harsh” legislation, including jail time, for any person who repeatedly allowed a building company to collapse.

[fish]

From MBA webpage :

Building Approvals do not Herald Recovery
Written by: Peter Jones, Chief Economist, 31 Jul 2012

Approvals figures released today by the Australian Bureau of Statistics have been welcomed by the building industry, but do not herald a recovery.

After a sharp increase in building approvals in May, total dwelling units approved fell back only 2.5 per cent in June, seasonally adjusted.

Chief Economist for Master Builders Australia, Peter Jones said the figures for the past two months are a welcome sign that the disastrous slide in approvals may be coming to an end.

“However, the building industry remains in survival mode and conditions in the residential sector are extremely difficult.

“While the trend in building approvals has turned positive, the actual level of activity remains in the doldrums. The annual building approvals figure of 145,000 dwellings needs to increase by at least 30,000 dwellings just to keep pace with housing needs related to Australia’s population growth.

“Today’s figures taken together with previous results are certainly welcome, but any recovery for the industry is still likely to be many months away and would be coming from an extremely low base.

“While there may be some movement in the forward indicators, this is very little comfort for builders in survival mode with little work on the books right now,” Mr Jones concluded.

Spin hey Fish????

Not sure if it's spin but I find it interesting that you've chosen to highlight the negatives from the article and not the positives.

[fish]

Maybe if you get your head out of the sand fish you may learn something too

I've taken your advice scoob and look what I found:

Jobs data points to healthy economy

INCREASES in full and part-time work pushed the unemployment down to 5.2 per cent in July, lessening the likelihood of future interest rate cuts this year amid signs the Australian economy remains in good health.

Total employment grew by 14,000 jobs, including 9,200 full-time, to 11.51 million over the month to July. Female employment grew by 20,000 while male employment declined by 7000.

Time for some cautious optimism maybe?

[southee]

From MBA webpage :

Building Approvals do not Herald Recovery
Written by: Peter Jones, Chief Economist, 31 Jul 2012

Approvals figures released today by the Australian Bureau of Statistics have been welcomed by the building industry, but do not herald a recovery.

After a sharp increase in building approvals in May, total dwelling units approved fell back only 2.5 per cent in June, seasonally adjusted.

Chief Economist for Master Builders Australia, Peter Jones said the figures for the past two months are a welcome sign that the disastrous slide in approvals may be coming to an end.

“However, the building industry remains in survival mode and conditions in the residential sector are extremely difficult.

“While the trend in building approvals has turned positive, the actual level of activity remains in the doldrums. The annual building approvals figure of 145,000 dwellings needs to increase by at least 30,000 dwellings just to keep pace with housing needs related to Australia’s population growth.

“Today’s figures taken together with previous results are certainly welcome, but any recovery for the industry is still likely to be many months away and would be coming from an extremely low base.

“While there may be some movement in the forward indicators, this is very little comfort for builders in survival mode with little work on the books right now,” Mr Jones concluded.

Spin hey Fish????

Not sure if it's spin but I find it interesting that you've chosen to highlight the negatives from the article and not the positives.

Whatever mate .... You read it anyway which makes you feel warm and fuzzy.

Enjoy !

[scoob]

The mining expansion will go ahead, it takes time to run thorough impact assessments.

What is holding back SA from economic prosperity? A high taxing State government prohibiting business investment in the State.

http://www.miningaustralia.com.au/news/ ... tm_content

[kickinit]

yep and now all business will either raise there prices or go out of business, or if where lucky they will wear the cost and take less of a profit. And in the mean time we will tax the mines because they make money, even though they stopped us from going into a real recession. We also put fear into mining companies from thinking about projects in Aust, meaning we miss out on possible jobs and money for the country. And the ones that are interested and willing to put money into this country have to put up with dole bums that are stoping mines from running 100%, and also stopping hard working aussie being able to work. And where does all this money go from the mines and the carbon tax straight to a new pay rise for Gillard. If anyone votes for her in the next election they should be put on a boat with all our illegal immigrants.

Memetic dribble.

The threat of the RSPT and the eventual watered-down mining tax had no effect on mining investment and expansion. Twiggy and Gina had the public/politicians wrapped around their little finger.

Had no effect yeh it's had effect and in a big way. Especially over WA a lot of mines have scaled back production and a lot of expansion talks have stopped as it's not worth it to them anymore.

There is no evidence to suggest this. In fact, there is a labor shortage in WA mining, hence the call to import foreign workers to keep up with the demand.

And SA will soon have the largest open cut mine in the world.

The mining industry is fine and the sooner we stop pandering to these multi-billionares, the sooner the country can fully economically capitalise on the the resources.

Is the mining industry still fine? Not with this government

[Q.]

It's a reaction to China's economic slowdown and the forecast that commodity prices will continue to fall. They will pull the stuff out of the ground when global commodity prices head upward.

[kickinit]

It's a reaction to China's economic slowdown and the forecast that commodity prices will continue to fall. They will pull the stuff out of the ground when global commodity prices head upward.

It was well known a fair while ago that the expansion will not go ahead until certain things change in Australia. And if it doesn't change then expect to become a third world country.

[dedja]

care to explain these 'things'?

[Q.]

It's a reaction to China's economic slowdown and the forecast that commodity prices will continue to fall. They will pull the stuff out of the ground when global commodity prices head upward.

It was well known a fair while ago that the expansion will not go ahead until certain things change in Australia. And if it doesn't change then expect to become a third world country.

It's no coincidence the postponement of the expansion was announced on the back of the PBoC's action to lower China's interest rates.

[kickinit]

care to explain these 'things'?

governement policys that are stopping growth and profit of australian mines. Gina Reinhart roy hill mine now going to employ australian workers before forgein? A lot of people actually thought this was to secure a cheaper workforce. these forgein workers would be on the same amount of money as australian workers. It was basically tio stick one to the government to get what she wanted. Same as BHP as soon as they get what they want the expansion will go a head. BHP have already spent a heap of money on the expansion, and it's not like they will hit a switch tomorrow and it will be running. By the time it would of been ready to start the economy would of changed. And why is it that contractors working on the project are still working on it as if nothing has changed, and by working on it i'm talking specialised equipment for the project.

[kickinit]

It's a reaction to China's economic slowdown and the forecast that commodity prices will continue to fall. They will pull the stuff out of the ground when global commodity prices head upward.

It was well known a fair while ago that the expansion will not go ahead until certain things change in Australia. And if it doesn't change then expect to become a third world country.

It's no coincidence the postponement of the expansion was announced on the back of the PBoC's action to lower China's interest rates.

It's no coincidence that it's been known for months the expansion wasn't going ahead?