This has made developers, financiers and households less willing to commit to new construction despite rising rental yields, lower prices relative to income and ongoing growth in population. While, at some point, the improving fundamentals should generate a pick-up in home building, the recent forward-looking indicators do not suggest that this is imminent.
Another other area that was weaker than expected was private business investment outside the resources sector. This partly reflects the decline in business confidence over the year, with a number of factors, including renewed concerns about the fiscal problems in Europe, adding to uncertainty. Public demand was also weaker than was expected.