AIG Performance of Construction index for October, a fall of 5.7 points to 53.4
- prior was 59.1
5th consecutive month in expansion despite the drop on the month
From the report:
KEY FINDINGS
- Signalled a moderation in the industry’s rate of growth, compared to September’s record-high reading of 59.1 points
- The slower pace of growth was apparent in activity, new orders and deliveries from suppliers in October. This led to a marked easing in employment growth during the month.
- Across the major industry sectors, apartment building activity continued to expand solidly and at a rate that was broadly unchanged from the previous month. This is despite a weakening in new orders for apartments. Continued strength was also evident in the house building sector, although its growth moderated. Commercial construction activity also grew at a slower rate in October, while engineering construction activity contracted for a fourth consecutive month.
- Survey participants said that the slower pace of growth was linked to an easing in new orders and a corresponding reduction in tendering opportunities during the month. Nevertheless, house builders were generally positive in their assessment of business conditions.
- The main factors cited as weighing on activity this month were project completions, sluggish public sector activity and a further winding back in mining related construction work.
