Australia - AiG Performance of Construction Index for September
Like the services PMI from AiG we got a couple of days ago, a decline for the Construction PMI. From 53.8 in August to 51.9 in September.
AiG's 'key findings':
- The national construction industry expanded for a second consecutive month in September
- Across the four sub-sectors in the Australian PCI, apartment building activity again expanded solidly and at a rate that was the strongest in the past 13 months
- House building activity also continued to expand with its rate of growth at an 11-month high in September
- In contrast, engineering construction activity fell further into negative territory in response to the on-going decline in mining-related investment. The sector's activity sub-index contracted for a fifteenth consecutive month and at the steepest pace since mid-2014. Commercial construction also declined, although conditions in this sector were close to stabilisation after lifting in August and September saw a further expansion of new orders in this sub-sector.
- Across the construction industry, activity, new orders and employment all lifted in September
- Despite the slower rate of growth in September, residential builders were generally positive in their assessment of business conditions citing low interest rates and the release of land for new housing developments as key factors supporting activity
- However, on a broader industry front, respondents to the Australian PCI pointed to on-going pressures arising from subdued private sector investment, a highly competitive pricing environment and tight margins.
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- The Australian manufacturing and services PMIs earlier
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AUD is barely changed. These PMIs tend to have negligible immediate FX impact.
