According to an ABC report, the construction industry continues to experience recessive conditions and is experiencing the largest decline in activity in six years.
The Australian Construction Performance Index (PCI) fell 3.9% to 39.1%. This is the eleventh consecutive month of contraction in the PCI, according to the report.
According to Peter Burn, head of policy at the Australian Industry Group (Ai Group), the problem was even more serious in the residential construction sector.
"In the future, the conditions seem more fragile than they have been for some time, with new orders falling further into negative territory, driven by the particular weakness of Canadian crude oil pipelines. new jobs in the housing and apartment sectors, "Burn said. ]
The recession is also affecting employment prospects in the sector, the report said.
Employment in the entire industry decreased from 7.7% to 35.9%, according to the PCI employment index.
The decline indicates a general reluctance by companies to increase their workforce capabilities while demand remains low globally, according to the report.
Stronger profit margins also affected manufacturers as sales prices continued to contract in July, according to the report.
"This negative reading indicates that rising input prices and other costs are not passed on to customers on average, as profit margins continue to be reduced for companies in the construction sector", said Mr. Burn.
According to Tom Devitt, an economist with the Housing Industry Association (HIA), there are signs that the pace of the decline is moderate despite the contraction in residential construction.
"The positive impact of two cash rate cuts and personal income tax reductions will take time to impact housing construction, but it provides a solid foundation for expect the decline in activity to slow down in the coming months, "said Devitt.
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