Australian Industry Group Performance of Construction Index

Wow, a big jump for May ... I had to do a double-take on that one. Both the manufacturing and services PMIs earlier this month had fallen in May.

Up 4.8 points to 56.7

  • previous 51.9

Key points from AiG:

  • The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index ... signalled industry-wide growth for a fourth consecutive month and at the fastest pace in just over 2½ years
  • Across the four sub-sectors apartment building activity drove growth in industry conditions in May. The sector's activity sub-index expanded (a result above 50 points) for a second consecutive month and at the steepest pace since November 2015. However, house building activity weakened returning to negative territory for the first time in five months in a further sign that the housing sector is cooling
  • Engineering construction was the second strongest performing area of construction activity with its rate of growth at a 9½ year-high level on the back of increased levels of non-mining infrastructure work
  • More robust conditions were also evident in commercial construction in May. After two months of declines activity in the sector recorded its strongest rate of growth in 32 months amid reports of increased success in securing new building contracts
  • Across the construction industry activity and new orders both showed stronger growth in May. This led to an upturn in employment while deliveries from suppliers continued to expand, albeit at a slower rate than in the previous month
  • Survey respondents to the Australian PCI® generally attributed this month's pick-up to an improvement in demand conditions citing stronger new orders and an increase in tendering opportunities
  • Apartment builders indicated that activity levels had improved further in May as new multi-unit projects moved into construction. Despite house builders pointing to a high degree of support from on-going projects, there were reports of a softening in new orders and home buyer sentiment in May. The rise in engineering construction was again linked to the roll-out of various big-ticket transport infrastructure projects

Bolding above is mine. It's a mixed bag with house building slower but engineering & commercial much improved.

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Earlier this month , the other two Australian PMIs:

  • Australia (May) manufacturing PMI: 54.8 (prior 59.2)
  • Australia - Services PMI (May): 51.5 (prior 53.0)