7 May 2015
Australia: Contraction in construction conditions in April
FXStreet (Bali) - Australia´s AiG construction PMI index for April came at 47.0 vs 50.1, with AiG noting that the reading indicates an overall contraction in industry conditions following signs of a mild recovery in March.
Key findings
"The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) declined by 3.1 points to 47.0 points in April. This indicated an overall contraction in industry conditions following signs of a mild recovery in March."
"The weaker Australian PCI® result for April was driven by a fall in the new orders sub-index which moved back into contraction (i.e. below 50.0 points) after recording solid improvement in the previous month. April also saw a slightly steeper decline in industry activity and renewed contractions in employment and deliveries from suppliers."
"By sector, house building expanded for a second consecutive month, although its rate of growth weakened from the five-month high level reached in March. Activity in the apartment building sector turned negative for the first time in three months."
"Reflecting the scaling back in major project activity, mining-related engineering construction and commercial construction continued to contract, although for both sectors rates of declines moderated from March."
"Survey respondents to the Australian PCI® attributed this month’s softening in conditions to project completions, a decline in new tendering opportunities and sluggish public sector building activity."
"However, house builders noted that customer enquiries and buyer confidence had been sustained at high levels in April, indicating that demand is still robust. Investor interest in the housing market was also generally seen to have remained solid in April. Local council planning delays and land supply bottlenecks were said to be the main factors hampering conditions in the housing sector."
Key findings
"The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) declined by 3.1 points to 47.0 points in April. This indicated an overall contraction in industry conditions following signs of a mild recovery in March."
"The weaker Australian PCI® result for April was driven by a fall in the new orders sub-index which moved back into contraction (i.e. below 50.0 points) after recording solid improvement in the previous month. April also saw a slightly steeper decline in industry activity and renewed contractions in employment and deliveries from suppliers."
"By sector, house building expanded for a second consecutive month, although its rate of growth weakened from the five-month high level reached in March. Activity in the apartment building sector turned negative for the first time in three months."
"Reflecting the scaling back in major project activity, mining-related engineering construction and commercial construction continued to contract, although for both sectors rates of declines moderated from March."
"Survey respondents to the Australian PCI® attributed this month’s softening in conditions to project completions, a decline in new tendering opportunities and sluggish public sector building activity."
"However, house builders noted that customer enquiries and buyer confidence had been sustained at high levels in April, indicating that demand is still robust. Investor interest in the housing market was also generally seen to have remained solid in April. Local council planning delays and land supply bottlenecks were said to be the main factors hampering conditions in the housing sector."