Fed: Builder warns industry in freefall

AAP General News (Australia)
08-09-2000
Fed: Builder warns industry in freefall

A building company executive says the industry is in freefall as lending for home building
collapsed to a 13-year low ahead of the GST.

Home lending plunged 14.5 per cent in June, the second biggest fall on record, and
is now down 23 per cent since October.

Builders have born the brunt of the collapse, with lending for the construction of
new homes down 17.1 per cent, seasonally adjusted.

This is the lowest level since August 1987.

Loans for home building have now fallen 43 per cent since interest rates began rising
in November, and with another increase announced just last week, the gloom is set to continue.

Master Builders Australia chief economist WILHELM HARNISCH says the housing industry
is now in freefall and there must be no further interest rate rises.

AAP RTV ss/mfh/jn

KEYWORD: ECONOMY (CANBERRA)

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