none

Slump in construction continues in April

31-08-2010
by 
in 
Slump in construction continues in April

Poor demand and subdued workloads – particularly in the apartment building sub-sector – pushed the national construction sector further into the red in April.

The latest Australian Industry Group Australian Performance of Construction Index (Australian PCI) in conjunction with the Housing Industry Association was 1.3 points weaker at 34.9 in April (readings below 50 indicate a contraction in activity with the distance from 50 indicative of the strength of the decrease).
 
Continuing the recent trend, apartment building was the weakest of the four sub-sectors with an index reading of 22.9. 
 
The index of house building (33.3) and commercial construction (35.2) activity also remained well below the expansion-contraction threshold of 50, reflecting the persistence of weak demand conditions in both sectors. Despite declining in the month, engineering construction continued to be the sector showing the greatest resilience due to the strength of resource related projects.
 
Australian Industry Group Director Public Policy, Peter Burn, said: "The fall in construction activity in April is further evidence of the widespread nature of the current slowdown in the broader economy. The ongoing weakness in the residential and commercial construction sub-sectors was exacerbated by the slowing in engineering construction activity that has now been in train since the start of the year.”
 
Housing Industry Association Economist, Geordan Murray, said federal and state government support and policy reform is a vital plank in restoring confidence and activity in the residential construction industry.
 
“Interest rate relief can’t do all the heavy lifting," Mr Murray said.

Related news & editorials

  1. 21.02.2019
    21.02.2019
    by      In
    As information technology (IT) departments become more sophisticated and improve their identification and response to cybersecurity breaches, many manufacturing companies (particularly at the SME scale) are becoming more susceptible to cyber attacks via their operational technology (OT).
    According... Read More
  2. 19.02.2019
    19.02.2019
    by      In
    The adoption of artificial intelligence is rapidly growing in the workplace; however, to take full advantage of the opportunities, businesses need to overcome lingering doubts from their customers and employees, according to new research from Genpact, a global professional services firm focused on... Read More
  3. 19.02.2019
    19.02.2019
    by      In
    The 2018 needles in strawberries episode served as a warning to all of Australian industry: failure to take security seriously can have disastrous consequences. However, it also served to highlight just how vulnerable manufacturing industry is to malicious acts, whether by disgruntled employees or... Read More
  4. 19.02.2019
    19.02.2019
    by      In
    MachineryHouse has continued its expansion across the ditch with the opening of a second branch in New Zealand. The new Christchurch MachineryHouse joins the existing branch in Auckland, and will greatly improve the service to customers all over the South Island.
    The new retail operation opened in... Read More