Building Material & Const

Brokers are increasingly confident that Brickworks will reflect the recovery in house building.

New dwelling construction is expected to improve this year and mitigate some of the pent-up demand, according to Commonwealth Bank economists.

Car maker exit a symptom of long-term manufacturing decline but construction activity is ramping up nicely and there could be some dividends surfacing from the resources and energy sector.

Analysts look at Australian household savings, TV ad budgets and housing recovery. Also in view are Chinese reform proposals and subdued US economic growth.

Building materials companies are poised for growth recovery as the numbers slowly start to stack up in their favour.

The outlook for Aust healthcare stocks is attractive, building and retail are mixed while gaming and transport are subdued.

Brokers are worried about many things this earnings season, including life insurers, building, construction and industry, gas supply, consumer stocks, even banks.

Modest domestic housing recovery, NBN squeeze on small telco margins, bank dividends look safe and leisure providers welcome lower Aust dollar.

James Hardie has not benefitted much from the rebound in US house building but, in Goldman Sachs’ opinion, that may be about to change.

House prices, building activity and consumer confidence are all subdued and Goldman Sachs has downgraded Australian economic growth forecasts.