AiG Performance of Construction Index ... yeah I did a double-take
Comes in at a huge jump of 6.5 points to 53.2
- prior 46.7
Key points from AiG on today's construction PMI:
- The national construction industry returned to growth in June
- The industry's highest rate of expansion in 10 months
- The rebound was driven by a solid upturn in the new orders sub-index which returned to growth (i.e. above 50 points) for the first time in eight months
- Conditions in June were also supported by an expansion in the activity sub-index (following falls in four of the past six months) and a lift in employment
- All four sub-sectors recorded growth in June
- House building gained further momentum with activity in the sector expanding at its highest rate in 30 months
- In addition, apartment building activity recovered strongly following two months of contracting activity
- Engineering construction expanded for the second time in three months (albeit marginally), while commercial construction activity recorded growth in June after two months of declines
- Residential builders were generally positive in their assessment of business conditions citing an improvement in new orders, support from on-going projects and steady investor activity
- The rise in engineering construction activity was attributed by some businesses to an improving inflow of new infrastructure work, particularly transport projects in NSW
- Competition for work, however, remains strong with a number of respondents indicating a continuation of intense pricing competition and tight margins
This result puts all 3 of the Australian PMIs into expansion for the month of June.
The data paoint does not usually have much of an immediate impact on the AUD, and there is indeed little response. But all 3 into expansion is a sign leaning to continued Australian economic growth.
-
Earlier this week we got manufacturing and services PMIs:
- Australia data: Manufacturing PMI for June : 51.8
- Australia Services PMI for June: 51.3 (prior 51.5)