none
none

Construction industry remains in the red

31-08-2010
by 
in 
Construction industry remains in the red

 

The national construction industry recorded its 24th consecutive month of contraction in May, according to the latest industry data.

The Australian Industry Group Australian Performance of Construction Index (Australian PCI) was down 0.2 points in May to 34.7 (readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease).

The index is conducted in conjunction with the Housing Industry Association. 

By sector, commercial construction registered the sharpest fall in more than three years coinciding with a further weakening in new orders. House and apartment building activity continued to contract substantially. Despite declining in the month, engineering construction contracted at the slowest rate of all sectors reflecting the strength of resource related projects.

Australian Industry Group Chief Economist, Julie Toth, said: "The Australian PCI remains deeply entrenched in negative territory.  The index continues to reflect the cyclical downturn in residential housing activity as well as the downturn in non-residential building and construction, outside the mining sector.

“While the two consecutive cash rate cuts from the RBA in May and June are very welcome and will help to improve sentiment among home builders and investors, it will take some time for this benefit to flow through to actual construction activity levels. In the meantime, the forward indicators such as building and credit application approvals all point to a further period of extended weakness in construction activity levels from here." 

Related news & editorials

  1. 16.11.2017
    16.11.2017
    by      In
    Beacon Lighting is well on the way to substantially reducing its carbon footprint as its partner Upstream Energy nears completion of a national solar project spanning more than 70 stores and saving millions of kilograms of carbon emissions each year.
    Upstream Energy developed a proposal to deliver... Read More
  2. 16.11.2017
    16.11.2017
    by      In
    The Brisbane company Nordon Cylinders is well aware that it has a key role in keeping the wheels of industry turning. However, its customers at home and abroad require hydraulic cylinders from tiny to humungous, and they don’t always want them today – sometimes, they want them yesterday.
    At its... Read More
  3. 16.11.2017
    16.11.2017
    by      In
    Wiivv Wearables is on a mission to make body-perfect gear accessible to the masses. Its flagship product, a custom shoe insole, has proven to be a good first step and uses a combination of customer-collected smartphone data and 3D printing to feed its design and manufacturing process.
    According to... Read More
  4. 14.11.2017
    14.11.2017
    by      In
    Good use is being made of the now-closed Holden manufacturing plant in South Australia, as a series of generators has been installed in to supplement the state's power grid during the incoming high-demand summer period.
    The diesel generators have been set up at the former Holden manufacturing plant... Read More