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Australia - Construction PMI for April 50.8 (prior 45.2)

AiG Performance of Construction Index

Big jump in the month, back to expansion

Key points made by AiG on this month's result:

  • Indicated a slight expansion across the construction industry following four months of contracting conditions
  • Employment recovering strongly after two months of decline
  • New orders continued to contract in April, although the rate of decline was marginal, and the slowest in five months
  • Across the four sub-sectors ... engineering construction returned to growth, following a 21-month period of contraction. In contrast, commercial construction activity weakened, falling back into negative territory after growth outcomes in the previous two months. House building activity contracted for a third consecutive month (albeit at a slower rate) while conditions in the apartment sector were weaker with activity recording a slight overall contraction in the month.
  • House builders mainly commented on slower market conditions due to fewer customer enquiries, weaker home buyer sentiment and lower new orders.
  • A softening in apartment building conditions was linked to over-supplied apartment markets starting to take hold, and tighter lending criteria for investors.
  • The lift in engineering construction activity was generally attributed to an improving flow of infrastructure work, particularly transport projects in NSW.
  • Highlighting the on-going toughness of operating conditions, a number of respondents indicated a continuation of intense pricing competition and tight margins.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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