The article I am going to review relates to the ACCT11059 topic of measuring and reporting financial performance. This is because measuring and reporting financial performance involves looking at the profit and loss accounts and reporting how the business is performing depending on the profit or loss made.
(a) the name of this business article is housing construction industry crumbles
(b) I found the article from the web
(c) An in-text reference- September marks the forth month since the start in
decline of Australias, construction industry, David O, 2010.
(d) An in-text of a direct quote can be written as В«Australias construction industry continues to contract, with September marking the forth consecutive month that the construction activity has fallen,В» David O, 2010.
(e) The article housing construction industry crumbles is an Australian article that explains the fall of the housing construction company in Australia. According to this article, the housing construction industry has been declining in performance for four consecutive months with the month of September marking the fourth month of the continuous decline. The decline in the performance of the housing construction industry has been evident in all of the different sectors of the industry.
The director of the Australian industry group public policy, Dr. Burn, associates the fall of the construction industry with the private sector which has failed to take spend to take up the slack after the withdrawal of the federal government stimulus. The construction companies in Australia have continued to be affected by the poor demand and the unending delays in the start of projects as the private sector have been striving to fill the gap that has been created by the terminations of projects that had been financed by the financial stimulus measures. Dr. Burn praised the Reserve Bank of Australia for the decision they made to maintain the interest rates at 4. 5% as they had formally thought of raising it. According to Dr. Burn, the decision of the Reserve Bank of Australia not to increase the interest rates is good because the construction industry has continued to show weakness together with the disappointing future outlook reflected by the low levels of the current orders. Increase in the bank interest rates are likely to cause more problems to the housing industry which is facing lack of demand and is currently reducing its labor force.
According to the housing and industry senior economist, Mr. Harvey, the PCI housing sub-index of Australia is now at its lowest point in a period of more than one and half years. Due to its four month consecutive fall in its sub-index, the housing construction in Australia is seen to have a negative position. According to the senior economist, it is not easy now to know how Australia can beat the current shortage in housing to meet the demands of its growing population.
(f) In reading this article, I would undertake further research to be able to know how the housing and construction company in Australia is struggling to change its poor performance. Further research would also inform me of the consequences of the poor performance of the housing industry and how the people concerned are working hard to make the situation more favorable.
(g) Members of the public will be interested to read this article because it will inform them of the financial performance of the housing construction industry in Australia. It will let them know of the drop in performance of the housing company and the reasons behind the poor financial performance of the Australian housing construction company.
David O. В«Housing and construction industry crumblesВ». 2010. Business dynamics. Web. Retrieved on 24 th November, 2010.