We had manufacturing and services PMIs out earlier in the week for Australia

  • Manufacturing PMI had its 6th consecutive month above 50
  • While services had a very poor result

Performance of Construction Index for December:

  • 46.8 vs. prior 50.7
  • Into contraction now after 4 months in expansion (i.e index >50)

Says AiG:

  • Contraction occurred despite growth in the apartment and house building sectors
  • Their strength outweighed by weak activity in the engineering and commercial construction sectors
  • Apartment building expanded at its slowest pace in six months
  • House building returned to growth, with activity rising modestly after two consecutive months of contraction
  • Engineering construction declining at its steepest rate in three months
  • Commercial construction also fell more sharply in December, with respondents noting patchy conditions across all of the major project categories
  • For the construction industry as a whole, both activity and new orders recorded steeper declines in December, due to this weakness in engineering and commercial construction
  • Construction industry employment stabilised following four months of growth, while slow growth in deliveries from suppliers was broadly unchanged from November