Housing starts measures the construction of new homes. When more new homes are being built, the construction sector is active, and consumers have the capital to afford taking on such investments. When new homes are finished, they have other effects on the economy as those homes have to be filled with furniture and appliances, boosting other sectors of the economy.
From the Release: "The seasonally adjusted estimate for the total number of dwelling units
commenced fell 3.7% in the June quarter which follows a revised fall of
1.0% in the March quarter."
According to Australian Bureau of Statistics, new private sector house commencements dropped by 0.9% q/q in March, following a revised increase of 0.1% in the December quarter 2006. New private other residential building rose 5.3% in the March quarter 2007 after a revised increase of 1.4% in the December quarter 2006.
