This is the Australian Industry Group Performance of Construction Index (PCI) for December
A big drop on the month to 52.8 from 57.5 in November
AiG's (in brief) 'key findings' from this month's survey:
- 52.8 points in December ... indicating a slowing in the industry's overall growth momentum in the final month of 2017
- However, it marked the 11th consecutive month of expanding conditions for the Australian PCI
- Demand conditions were also more subdued with the new orders sub-index drifting into mild negative territory (i.e. below 50 points) following eight months of growth
- employment growth continued to hold at a relatively firm rate consistent with a solid backlog of work and scheduled project starts in 2018
Across industry sub-sectors, engineering construction and house building remained the strongest performing areas of construction activity in December.
- However, the pace of activity growth in both sectors was well down on the solid increases recorded in November
The rate of expansion in commercial construction was also slower in the month, although December marked the sector's eighth consecutive month of stable or expanding activity amid stronger property investor demand and improving business conditions more generally in 2017
Apartment building activity returned to positive territory after contracting for four consecutive months, although the overall rate of expansion in December was marginal
House builders continued to point to support from a solid backlog of work, although there were reports of a softening in new orders and reduction in customer enquiries about house constructions in December
Respondents active in major project work again cited the positive influences on activity from the upswing in government infrastructure spending and rising investment in major commercial building developments.
more to come
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This piece of data tends not to be too much of an immediate FX mover. But, it all goes into the mix.
Last week we got the various manufacturing and services PMIs out of Australia:
- AiG manufacturing PMI for December: 56.2 (prior 57.3)
- AiG's Services PMI (December): 52.0 (prior 51.7)
- CBA's manufacturing PMI: 57.1 (prior 56.3)
- CBA services and composite PMIs for December: 55.1 & 55.5
Today's construction index completes the December PMIs.