Despite a dismal March period for that nation’s construction sector, a national survey of more than 500 builders and contractors has revealed that sentiment is starting to pick up amongst the country’s builders.

The March quarter 2013 Master Builders National Survey of Building and Construction found that builders expect the sector to pick up in the medium term, but still expect a lacklustre short term outlook.

The survey is another indicator suggesting the medium to longer term outlook for the building industry is starting to improve, while in the short term recovery remains tenuous. 

The survey comes as a mixed picture of the sector is emerging, with dwelling approvals up according to the Australian Bureau of Statistics, but construction still in relative decline according to the Australian Industry Group.

Peter Jones, Chief Economist of Master Builders Australia said while signs of a recovery may be beginning to emerge for the industry, the upswing is coming from a very low base and questions remain about its strength.

“The turnaround in the survey sentiment suggests previous interest rate cuts may be beginning to take hold, but builders are yet to see any benefit from the rate reductions.

“Builders reported less work on the books than in the previous quarter, sales contracts remained essentially unchanged and profits remain weak.

“The good news for builders came in some of the industry’s forward indicators. Display centre traffic and commercial enquiries increased markedly in the quarter and are now higher than the average reading recorded over the past nine years.