Australian Industry Group Performance of Construction Index
AiG's 'key findings' (summary):
fifth consecutive month of expansion
pace of growth moderated slightly from May's 32-month high level
Across the four sub-sectors
- house building rebounded strongly in June, with the sector's rate of growth reaching a three-month high
- However, activity in the more volatile apartment building sector weakened significantly, falling back into negative territory following a solid upturn in May
- The commercial building sector remained on a firm footing in June with activity continuing to expand at a relatively solid rate amid reports of rising project starts.
- In contrast, activity in the engineering sector stabilised in June following two months of solid growth
Across the construction industry, activity and deliveries from suppliers both expanded at softer rates in June. The new orders sub-index lifted slightly from the solid level of the previous month to record its fastest pace of expansion in close to 11½ years
Reports from residential builders were mixed. Respondents were generally positive in their assessment of house building activity, citing stronger new orders and a high degree of support from on-going projects. However, there were reports from apartment builders of softer activity in the month due to the completion of some larger multiunit developments and an easing in demand conditions.
Little immediate AUD impact (there rarely is from this indicator)
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The other PMIs for June were earlier this week:
- Australia - manufacturing PMI (June): 55.0 (May was 54.8)
- Two new Australian PMIs started today - from CBA / Markit: results, summary.
- Australia services PMI for June 54.8 (prior 51.5)
