Fed: Rate rise could defer employment plans = 2

AAP General News (Australia)
12-03-2003
Fed: Rate rise could defer employment plans = 2

The Master Builders Association (MBA) said the rise would inevitably lead to job losses
in the construction industry, probably from the middle of next year once work in progress
was completed.

"The employment impact is likely to come through in the June quarter next year, there's
still quite a lot of work in the pipeline but once that's done you would have to expect
(an impact on jobs)," MBA chief executive Wilhelm Harnisch said.

"We are disappointed by the rate rise because we believe it's too early, we believe
that the November rate rise is already having an effect on consumer behaviour and we believe
that the impact of the November rate rise should have been given more time to flow through."

Mr Harnisch said conditions in the building industry were already beginning to soften,
and the second rise in as many months would accelerate the decline.

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KEYWORD: ECONOMY RATES REAX 2 CANBERRA

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