Master Builders regularly seeks input from our members to better understand their views on the economy, their business prospects and the conditions they face in the building and construction industry.

Results of Master Builders’ latest sentiment survey saw Victorian builders’ belief in their industry’s future rise for the first time since mid 2014.

Our Industry Expectations Index recorded 53.1 points for the June quarter, up from 48.1 points in the March quarter. This has taken the index above the five year average, and slightly below the current national figure.

Confidence in the industry has most likely improved as a result of the Victorian Governments May budget, which saw millions of dollars committed to infrastructure, school and hospital building projects.

As these projects begin to come online, we hope to see expectations improve further.

Our feedback from members indicates that lack of certainty around infrastructure investment remains a key issue for industry and business confidence.

With early signs of growth in our sector, we urge the Victorian Government to continue to invest in infrastructure projects across Victoria.

Governments need to ensure we have a pipeline of shovel-ready infrastructure projects.

The rise in builders’ expectations for the industry has also led to them feeling slightly more secure about their own business prospects.

Our Business Expectations Index has risen slightly from 60.6 points in the March quarter to 62.4 points in June, and remains above the five year average.

The Victorian index is above the current national figure, which has dropped to 60.7.

Builders expect their own business activity and profits to continue to improve over the next six months.

Builders are asked about their intentions regarding their likely levels of employees and subcontractors over the next six months, relative to now.

Our Employment Intentions Index has risen slightly from 50.4 points in the March quarter to 53.6 points in June.

The Victorian index is currently trending with the national figure, and remains above the five year average of 46.8.

As the index is above 50, this indicates that builders are likely to lift their employment levels over the period ahead.

The Profit Expectations Index recorded 58.6 points for the June quarter, up from 55.7 points in the March quarter.

Our members are feeling slightly more confident about the profit expectations for their businesses, as a result of encouraging signs of growth in the industry.  The current figure indicates that builders expect their business profits to improve over the next six months.

The rise in expectations across the industry has also seen a slight drop in the expected impact of wages on our members businesses. The Wage Costs Impact recorded 44.5 points for the June quarter, down from 46.5 points in the March quarter.

This index is still slightly above the five year average of 42.9 points.