The upswing in building activity is part of the “transition” to more growth from the non-mining sectors. Low interest ratesettings provide the required background and it will be assisted with further lifts in business and consumer confidence. Today’s data for the September quarter shows a modest contribution to this change. But we expect to see more consistentcontributions in the next few quarters. The residential approvals data clearly shows that a strong upswing in constructionwill occur through 2014. There will be favourable flow-on effects to materials and labour demand and parts of retailing.
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Commonwealth Bank