Construction insolvencies continue to surge

Developers go bust

Over the year to 3 November insolvencies in Australia continued to rise sharply, according to ASIC's latest data. 

5,194 insolvencies were reported for July to November, up from 3,511 for the prior comparative period. 

To date, there's been no let-up in the surge of construction sector insolvencies.

It goes without saying that this is not good news for the burgeoning housing shortage in Australia.

Charter Hall boss David Harrison was reported in the AFR today saying that if today is a housing crisis then "God knows what they'll call it in five or 10 years".

Developers in Sydney have been smashed by high interest rates and construction costs, meaning that developers don't see the value in commencing new unit projects.

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In other news, Canada's inflation rate picked up to 2 per cent in October, meaning that the next interest rate cut may prove to be 25 basis points, instead of 50. 

The UK inflation rate picked up to 2.3 per cent as the energy price cap was lifted by 10 per cent last month, impacting millions of households. 

Markets are still pricing for 59 basis points of cuts from the Bank of England before Xmas (down from 64 basis points before the inflation data was released).

New Zealand's economy is in a mess and struggling, and next week will see another 50 basis points interest rate cut...if not more. 

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