The Australian Industry Group Performance of Construction Index

October in at 53.2

  • September was 54.7

Lower on the month and still in expansion territory

AiG's 'key findings' for the month (in summary and bolding mine):

  • expanded for an eighth consecutive month

Across the four sub-sectors

  • engineering construction and house building continued to drive industry growth
  • Consistent with the ramp-up in government infrastructure spending, engineering construction activity was again robust in September with the sector expanding for a sixth consecutive month
  • The house building sector also expanded solidly and at a rate that was broadly unchanged from August
  • Commercial construction activity remained stable in September although new orders continued to hold at relatively firm levels
  • In contrast, apartment building fell further into negative territory with the sector's activity sub-index contracting at is sharpest rate in seven months

both activity and new orders continued to rise, although rates of growth moderated in comparison with August

  • In line with the sustained growth in aggregate industry demand and activity, deliveries from suppliers expanded at their highest rate in three years
  • Businesses also lifted their workforces with employment increasing at its second highest pace in eight months

Respondents were generally positive in their assessment of house building activity, citing relatively solid demand conditions and a high degree of support from on-going projects. However, reports from apartment builders pointed to a further softening in activity due to weaker new orders, a reduction in investor activity and the completion of some major projects. The rise in engineering construction was again linked to the upturn in nonmining infrastructure as the roll-out of major new road and rail projects gathers pace.

Not a bad report from construction sector purchasing managers.

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This is the final of the PMIs for Australia for October. Earlier in the month (last week it was) we got:

AiG's:

CBA / Markit: