Australian Industry Group Performance of Construction index for April 47.0
- The prior result was a big 6.2 point jump to 50.1 ... but giving some back in April ...
Comments from AiG:
Ai Group Head of Policy, Peter Burn:
- "House building was the major positive and engineering construction remained the biggest drag on the Australian construction sector in April.
- With the volatile apartment sub-sector slipping into negative territory and commercial building still contracting, the overall construction sector went backwards.
- The distinct fall in sector-wide new orders is a clear warning that activity is unlikely to rebound anytime soon with only the house building sub-sector avoiding contraction.
- The Reserve Bank's further trimming of interest rates this week may stimulate activity somewhat but it is difficult to see why this additional reduction will be effective in lifting overall activity unless supported by a degree of budget stimulus next week"
HIA Senior Economist, Shane Garrett:
- "During April, house building was the only subsector of the construction industry to see expansion and underlines the importance of residential construction in fuelling domestic demand more broadly.
- This week's interest rate cut to a new all-time low of 2% means prospects for new home building look bright for the short-term at least, and will continue to offer badly-needed support to Australia's economy."
Last month's jump into expansion was short-live ... contracting again
