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9 Jan 2015
Australia AiG Performance of Construction Index falls in December
FXStreet (Bali) - Australia AiG Performance of Construction Index fell from previous 45.4 to 44.4 in December.
Key findings
"The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) fell by 1.0 point to 44.4 points in December. The three-month moving average drifted down to 47.8 points in December."
"This indicated that the national construction industry contracted at a slightly steeper rate in December 2014, reflecting further falls in activity and new orders. This decline led to further cuts in employment and a renewed decline in deliveries from suppliers."
"December was the second consecutive month that the Australian PCI® has been below the critical 50-points level that separates expansion from contraction, following the industry’s return to growth in mid-2014. December signalled the construction industry’s steepest contraction since February 2014."
"All four sub-sectors of the Australian PCI® contracted (i.e. below 50 points) in December. Following five months of growth, apartment building turned down sharply to be at its most subdued in the past 16 months. House building contracted for the first time since August 2013, while the commercial sector experienced a steeper rate of decline. Engineering construction continued to exhibit weakness, contracting at about the same rate as the previous month."
"Respondents to the Australian PCI® mainly attributed this month’s deterioration in conditions to a smaller pipeline of new business, a lack of public sector tenders and project delays. Slower mining related construction work weighed heavily on conditions in engineering construction."
"House builders pointed to fewer new orders and customer enquiries, against a background of subdued consumer sentiment. However, demand from housing investors was said to be holding up reasonably well."
Key findings
"The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) fell by 1.0 point to 44.4 points in December. The three-month moving average drifted down to 47.8 points in December."
"This indicated that the national construction industry contracted at a slightly steeper rate in December 2014, reflecting further falls in activity and new orders. This decline led to further cuts in employment and a renewed decline in deliveries from suppliers."
"December was the second consecutive month that the Australian PCI® has been below the critical 50-points level that separates expansion from contraction, following the industry’s return to growth in mid-2014. December signalled the construction industry’s steepest contraction since February 2014."
"All four sub-sectors of the Australian PCI® contracted (i.e. below 50 points) in December. Following five months of growth, apartment building turned down sharply to be at its most subdued in the past 16 months. House building contracted for the first time since August 2013, while the commercial sector experienced a steeper rate of decline. Engineering construction continued to exhibit weakness, contracting at about the same rate as the previous month."
"Respondents to the Australian PCI® mainly attributed this month’s deterioration in conditions to a smaller pipeline of new business, a lack of public sector tenders and project delays. Slower mining related construction work weighed heavily on conditions in engineering construction."
"House builders pointed to fewer new orders and customer enquiries, against a background of subdued consumer sentiment. However, demand from housing investors was said to be holding up reasonably well."