The Australian Industry Group (AI)’s  Australian Performance of Construction Index shows that a slowdown in the decline of construction rates. The seasonally adjusted index lifted 4.7 points to 34.7 while remaining well below the 50 point level separating expansion from contraction.

 

Although all four construction sub-sectors remained in negative territory in October, there were signs of improvement with rates of decline in activity easing across all the four sub-sectors. House building recorded its least pronounced decline in four months (up 9.2 points to 33.3). Engineering construction remained the most resilient sector (up 2.5 points to 44.1), largely due to support from infrastructure and resource-based projects. The survey also suggests that the pace of decline in new orders may have passed a low point with a lift of 8.0 points to 31.9 in the month.

 

Although all four construction sub-sectors remained in negative territory in October, there were signs of improvement with rates of decline in activity easing across all the four sub-sectors. House building recorded its least pronounced decline in four months (up 9.2 points to 33.3). Engineering construction remained the most resilient sector (up 2.5 points to 44.1), largely due to support from infrastructure and resource-based projects. The survey also suggests that the pace of decline in new orders may have passed a low point with a lift of 8.0 points to 31.9 in the month,” Australian Industry Group Director Public Policy, Peter Burn, said:

 

Australian PCI® Key Findings for October:

  • The latest Australian Industry Group Australian Performance on Construction Index (Australian PCI®) in conjunction with the Housing Industry Association rose 4.7 points to 34.7 in October (readings below 50 indicate a contraction in activity).
  • The October Australian PCI® marks the 17th consecutive month of contraction for the construction sector.
  • While all major sub-sectors remained in the red in the October, all improved on the previous month with house building up 9.2 points to 33.3, apartment building 4.6 points stronger to 25.6, commercial construction up 5.5 points to 31.3 and engineering construction lifting 2.5 points to 44.1.
  • A number of engineering construction businesses pointed to strong support from infrastructure and resources-based projects as driving the improvements in the sub-sector.
  • The new orders sub-index was 8.0 points stronger at 31.9 in October.
  • Construction employment continued to decline in October, although at a slower pace, up 5.0 points to 37.3
  • Selling prices moved from 34.6 in September to 32.8 in October.

 

Download the full October 2011 Australian PCI®