Why it matters: the renovations market is worth some $11 billion to the economy
GWA, a major bathroom supplier, says it will be subdued until at least next year
Sales at JB Hi-Fi’s whitegood retailer The Good Guys fell 12 per cent in July
Australia’s $11 billion renovations market is at the start of its first significant downturn in a decade amid a broader construction crunch and as interest rate increases and rising costs crimp spending on building.
On Monday, GWA Group, one of the country’s largest suppliers of bathroom and kitchen products, said it expected its renovations segment to remain subdued until at least the middle of next year. The company behind brands like Caroma, Clark, Dorf and Methven said, based on projections by BIS Oxford Economics, the market would slide by 8 per cent over the year.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
Carrie LaFrenz is a senior journalist covering retail/consumer goods. She previously covered healthcare/biotech. Carrie has won multiple awards for her journalism including financial journalist of the year from The National Press Club. Connect with Carrie on Twitter. Email Carrie at carrie.lafrenz@afr.com
Michael Bleby covers commercial and residential property, with a focus on housing and finance, construction, design & architecture. He also dabbles in the business of sport. Michael is based in Melbourne. Connect with Michael on Twitter. Email Michael at mbleby@afr.com
