Australian Industry Group Performance of Construction Index for March
Comes in at 51.2, down 1.9 points from February's 53.1
Key points made by AiG:
- Across the four construction sub-sectors, house building activity drove growth in industry conditions in March. The sector's activity sub-index expanded for a third consecutive month and at the fastest pace since mid-2016
- In contrast, apartment building activity fell further into negative territory with the sector's activity sub-index contracting for a seventh consecutive month. Weaker conditions were also evident in commercial and engineering construction with activity in both sectors falling into negative territory after solid improvements in February
- House building respondents were generally positive in their assessment of business conditions, noting that customer enquiries and sales had continued to hold firm. Investor activity in the housing market was also seen to have remained solid in the month
- However, on a broader industry front respondents pointed to a range of pressures which were constraining activity, including subdued private sector investment, weaker demand for new apartment developments and a further winding back in mining-related engineering construction
- The softer overall Australian PCI result for March was associated with a fall in the new orders sub-index which moved back into contraction (i.e. below 50 points) after returning to growth in February
(bolding mine)
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Earlier this week we got the other two PMIs from Australia:
- Manufacturing PMI (March): 57.5 (prior 59.3)
- Services PMI for March: 51.7 (prior 49.0)
