"A sharp jump in manufacturing volumes and a robust increase in hours worked are anticipated to have provided the bulk of the support to growth"
- economist at TD Economics Diana Petramala
Australian new home sales bounce back in March, recovering from an unexpected drop in the previous month. According to the Housing Industry Association, the total seasonally adjusted new home sales surged by 4.2% in March, after a 5.3% drop in February. At the same time, new detached house sales rose by 3.9% following a 4.0% decline in February. The report also showed that the government can boost new housing supply by implementing more economic reforms, which will lead to the increase in productivity and revenue.
"A bounce back in March after a disappointing result for February is a good result to see," said HIA Chief Economist, Harley Dale. "It was important we saw a rise, even one that didn't completely eradicate the February decline."
In a separate report JPMorgan Chase said that the nation's housing investment is unlikely to fill the gap left in Australian economic growth by a slowdown in the mining industry. Home prices are expected to grow less than 5% during this year, after two years of declines, compared with a 11% gain in 2009. Due to the lacklustre demand, potential buyers are showing unwillingness to take on more debt and boost credit growth.
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