Market Update – July 2022
Market Update from Calibre Steel
The record-low unemployment rate continues to support the economy as job ads and vacancies remain high. According to NAB, the unemployment rate is seen to reach 3.5% by mid-year. On the other hand, the inflation rate has been catching up, recording an annual rate of 5.1% for Q1, up from the previous quarter’s (Q4 2021) 3.5%. Because of this, analysts have anticipated a rate hike which materialized early in May, raising the previous 0.10% to 0.35%. Unsurprisingly, consumers’ top stressor is the rising cost of living according to the NAB Consumer Sentiment Survey.
The results of the federal election appear to be well received but are still causing some degree of uncertainty as to the continuity of policies, programs, and commitments among others. Total construction starts are steadily increasing as reflected in the long-term reading and the 12-MMA trend. Meanwhile, volatility in recent and forecast months is seen in the short-term comparison at -19%.
Source: BCI Forecaster
This market update data is provided by BCI Forecaster.
BCI Forecaster delivers research on well over 100,000 construction projects p.a. in all stages of development from early concept-design to construction.