Quote Originally Posted by winner69 View Post
NZIER Quarterly Survey of Business Opinion fpr the September quarter had this about the buildering sector -

There was a further drop in confidence in the building sector from 18 percent to 3 percent. June quarter GDP had shown another contraction in construction, and indicators suggest further softening in construction activity is likely in the near term.

Profitability in the building sector has also deteriorated, as building sector firms are finding it more difficult to pass on rising costs.

So as you say baabaa things not that bright in the building sector.

Don't forget Metro's had an abysmal Gross Margin of 44% in second half of last year (normally 53% odd) - a sure sign that they were both discounting contracts and were 'finding it more difficult to pass on rising costs'
Oddly I kind of see this as a positive. It just shows you the market is very tough at the moment and MPG is not the only one struggling. That to me gives a bit more credibility to management. I also think the cost pressures may decrease somewhat into the next year.