The 12.6 per cent drop in the number of Australian homes being built in March is partly down to a slump in consumer confidence across the country, according to the Master Builders Association (MBA).
MBA chief economist Peter Jones said the macroeconomic conditions prevalent across the globe have made Australian consumers more cautious.
Additionally, the eurozone crisis and the upcoming introduction of the carbon tax in Australia have spooked many potential buyers, he suggested.
"The figures are a major setback for an industry that has now fallen to lows experienced during the global financial crisis," added the economist.
However, he expressed pleasure at the Reserve Bank's move to cut interest rates, noting that the urgency of this decision is underlined by the latest figures from the Australian Bureau of Statistics.
The Housing Industry Association responded to the latest data by urging the government to take steps to reform the property industry.
Posted by Steve Douglas
