Builders' positive about second half

The Master Builders Australia (MBA) national survey of building and construction for the June quarter indicated a record level of optimism about profits for the rest of the year.

Builders' own business activity rose in the quarter as part of a up-ward trend following a two-year decline.

But they still expect interest rates to rise moderately over the next 12 months.

"The June quarter survey reveals that builders are becoming more positive about the outlook for residential activity and conditions in the non-residential sector are likely to remain strong," MBA's chief economist Peter Jones said.

"Builders now expect residential activity to improve over the next six months despite lingering concerns about housing affordability and other constraints on business activity," Mr Jones said.

"The Reserve Bank needs to be cautious as they consider monetary policy as the positive momentum gathering force in the residential sector would be set back if interest rates, currently on hold, were to move higher."