none

Construction industry on the rise

09-06-2010
by 
in 

The construction industry remained in the black for the third consecutive month in May, although the pace of growth eased slightly as operating conditions become more difficult. 

The latest seasonally adjusted Australian Industry Group/Housing Industry Association Performance of Construction Index (Australian PCI) was 53.2 in May, down 2.6 points but still above the 50 point level indicating an expansion in activity.

House building experienced the strongest conditions with a lift in new orders and increased investor activity. This was in stark contrast to the apartment building sub-sector which recorded a sharp decline in May with the sub-sector index down 16.8 points.

Australian Industry Group Director Public Policy, Dr Peter Burn, said: "The continued expansion of the construction sector as a whole and the ongoing growth of new orders in housing, engineering construction and commercial construction are positive signs that the recovery in the sector is gaining traction following the difficulties of the past couple of years. The increased pace of input deliveries and the growth of employment suggest that businesses are taking a more positive near-term outlook.

"However, there is some cause for caution in the May Australian PCI.  The volatile apartment sub-sector underperformed in May and there is a continuation of the weakness of new orders in this area evident since January. Activity in apartment and engineering construction slumped in May and the pace of growth in commercial construction activity that we saw in April was not maintained," Dr Burn said.

Housing Industry Association Senior Economist, Ben Phillips, said: "The continued strength for home building activity is a positive for the industry, however, the industry remains concerned about a likely downturn once government stimulus has run its course.

"The apartment segment continues to underperform highlighting the fragile nature of this credit constrained market," Mr Phillips said.

Related news & editorials

  1. A world-first advanced manufacturing accelerator known as ‘Line Zero – Factory of the Future’ has begun construction at the Tonsley Innovation District near Adelaide, as the government looks to the future to reinvigorate the manufacturing industry.
    18.02.2021
    18.02.2021
    by      In , In , In
    A world-first advanced manufacturing accelerator known as ‘Line Zero – Factory of the Future’ has begun construction at Tonsley Innovation District near Adelaide, as the government looks to the future to reinvigorate the manufacturing industry.
    The South Australian government has matched a $5... Read More
  2. Left to right: Jeff Tighe, Rod Tighe, David Macdonald (Applied Machinery)
    09.02.2021
    09.02.2021
    by      In , In , In
    Metal products can be spun using one piece of material to produce parts without seams or welds. Without seams, a part can withstand higher internal or external pressure exerted onto it.
    One of the more unique products that Tighe Metal Spinners produces each year is the AFL Premiership Cup for Cash’... Read More
  3. 05.02.2021
    05.02.2021
    by      In , In
    In critical systems, genuine components are the safest and most reliable.
    As cars become more sophisticated, safety and security risks grow as well. Designers can now enhance these elements for vehicle systems while reducing both complexity and code development by authenticating genuine components... Read More
  4. The Mototrbo Ion smart radio is designed for the manufacturing industry to meet greater need for collaboration and productivity tools and simple, reliable voice, video and data communications.
    03.02.2021
    03.02.2021
    by      In , In , In
    The global pandemic has driven businesses to shift and adapt operations to meet changing demands and new challenges.
    Any large-scale project would need all the help it can get from technology, communications, accurate data and especially with communications.
    The Mototrbo Ion smart radio is designed... Read More
Products
Suppliers