This is the AiG Performance of
Construction Index, the final of AiG’s 3 PMIs
Slipping into ‘contraction’ and adding to the less positive results we have been seeing on this sector of the Australian economy.
This from earlier in the week, for example:
This PMI had been in expansion for the previous 20 months.
Highlights from the report (lowlights I guess)
- new orders sub-index contracted (weaker demand conditions across all four industry sub-sectors)
- further decline in employment which recorded its sharpest fall in 21 months
- house building declined for a second consecutive month and at the steepest rate in just over two years
- apartment building recorded a seventh month of contraction
- Engineering construction was the strongest performing area of activity with its rate of growth lifting solidly in the month on the back of an expanding pipeline of publicly funded investment in large-scale infrastructure projects
- commercial construction was again subdued, remaining in slight negative territory for a third consecutive month
- House building respondents linked the weakening in demand conditions to tighter lending conditions, reduced enquiries and softer home buyer sentiment
- Apartment builders indicated that activity remained in decline in response to project completions, falling investor demand and oversupplied markets
Key takeaway is the government stimulus (infrastructure spending) stopping this sector falling harder for now.
Earlier PMIs for Australia for September