Construction on the decline, but moderating
Despite recording a decline for the sixth consecutive month, the Australian construction industry has moderated, the latest Australian PCI report has shown.
The Australian Industry Group – Housing Industry Association Performance of Construction Index (Australian PCI) reported that construction figures for the month of August registered 6.9 points below the critical 50.0 points level separating expansion from contraction.
However the rate of contraction had slowed, as the index rose by 1.5 points from the month before.
When broken up by sector the report revealed that commercial construction had expanded in August to 57.1 points and apartment construction had lifted by 14.8 points to 43.3. Home building activity and engineering construction fell in August to 34.5 and 34.4 points respectively.
“Construction firms overwhelmingly linked the continued reduction in total construction activity to subdued market demand and subsequent declines of new order volumes,” the report stated
“Three were also reports that economic uncertainty and tight credit conditions had led to further delays in project commencements.”
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