none
none

Construction industry still in the red

08-03-2011
by 
in 

The national construction industry remained in the red in February, although the rate of contraction eased, according to the latest industry data.

The Australian Industry Group Australian Performance of Construction Index (Australian PCI) in conjunction with the Housing Industry Association, was up 4.4 points to 44.6 over the previous month (readings below 50 indicate a contraction in activity).

A lift in new orders for engineering construction helped push the sub-sector activity up 13.3 points in February (although the sub-sector remained below 50). 

The rate of decline also eased in commercial construction and apartment construction.  However, ongoing consumer caution was evident in the reduction in activity in the house building sub-sector (down 3.1 points).

Australian Industry Group Director Public Policy, Peter Burn, said: "The weakness in the construction sector evident since mid-2010 continued in February. Nevertheless, apart from house building which continues to disappoint, there are some signs that activity in the other sub-sectors may improve in the months ahead. The expansion in activity recorded by engineering construction and the slowdown in the pace of decline of activity in apartment and commercial construction provide some encouragement. The forward-looking new orders indicator points to a similar pattern of improvement.

"The slump in activity in the housing sub-sector in February marked the ninth consecutive month of decline. The fall in housing new orders is particularly disappointing and suggests the slump may still have some way to run. The decision last week by the Reserve Bank to keep interest rates on hold for the time being may assist in lifting confidence in this area," Dr Burn said.

Related news & editorials

  1. Martin Chappell
    03.11.2017
    03.11.2017
    by      In
    With Australia’s manufacturing industry strengthening, leaders and heads of IT are weighing up which new technologies they should implement to gain a competitive edge. Martin Chappell from Motorola Solutions explains how a simpler and more focused use of data can be the best approach.
    Australia’s... Read More
  2. Sahara Force India F1
    29.08.2017
    29.08.2017
    by      In
    The pace of Formula One (F1) development is rivalled only by the speeds achieved on the racetrack. Each time the Sahara Force India F1 Team brings its car to a circuit, it represents the team’s top engineering; every time the team leaves, the car is just a baseline. Between races it must be... Read More
  3. capacitor reforming
    12.07.2017
    12.07.2017
    by      In
    The latest productivity enhancing service from Konecranes addresses the problem of keeping spare motor drives in shape so they can be relied on to enter service if required. The company’s new variable frequency drive capacitor reforming service uses a proprietary DC power source to reform stored... Read More
  4. 27.06.2017
    27.06.2017
    by      In
    The most heralded benefit of the fourth industrial revolution (or Industry 4.0) is the availability of increasing volumes of data concerning the performance of manufacturing operations (so-called “big data”). These data range from the enterprise level, to the plant level, and down to the individual... Read More