Infrastructure construction hits 10-year high

The latest Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (PCI) has indicated continued growth in construction activity across the country for the ninth consecutive month.

In October, the overall PCI sat at 53.2, a slight ease from September’s reading of 54.7.*

Across the four construction sub-sectors, engineering construction took the cake as the strongest performer with a PCI of 60.4, hitting a 10-year record high. House building also recorded continued growth, despite falling slightly from September’s figures (down 3.5 points to 53.1).

Ai Group Head of Policy, Peter Burn, says the overall outlook in the construction industry remains positive despite flat commercial construction and another month of contraction in the apartment sub-sector.

"Construction industry employment also expanded and a lift in new orders points to further overall growth in the months ahead,” he says.

“Nevertheless, the outlook for the apartment sub-sector is for a continuation of the orderly retreat from historically high levels that has been evident over the course of 2017. There may still be plenty of cranes visible on new apartment sites but there are now many less than was the case a year ago.”

Commercial construction activity remained stable in October (down 0.2 points to 50.1), while apartment building stayed in negative territory, but at a slower rate (up 5.4 points to 46.8).

New orders continued to rise in October (up 0.3 points to 53.6) while employment is still on the up, albeit at a slower rate (down 3.0 points to 52.4).

* readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase