According to the latest report from the Australian Group of Industry (Ai Group) and the Housing Industry Association (HIA), the slowdown in Australia's construction sector eased in October, due from the improvement of the segment of individual houses.
The Australian Construction Performance Index (PCI) posts a score of 43.9 points, up 1.3 points from September. PCI was contracted for 14 consecutive months, but recent reading indicated the lowest rate of decline in 15 months.
"The improvement in housing markets since the middle of the year, especially in Sydney and Melbourne, is beginning to restore confidence.This improvement is clearly evident in the subindices of construction activity and new orders for single-family homes ", senior economist at HIA. Geordan Murray said
See also: The unexpected gain in housing construction clocks
While the single-family home segment improved, the apartment market remained the weakest performing sector, registering its 19th consecutive month of decline.
The residential sector will likely take some time to grow again, but the low rate environment will remain supportive, said Ai Group policy chief Peter Burn.
"What could be an early sign of the impact of recent interest rate cuts, has been a slowing pace of declining activity and new orders in the sector. housing, "he said.
Commercial construction work remained moderate over the month, but the rate of decline showed no acceleration.
"While conditions vary considerably from one sector to another, developments in the main categories of commercial and social buildings, including hotels and tourism-related projects, industrial premises , education and health buildings, contribute to the overall performance of the sector, "says the report.
Engineering-construction activities also contracted, as conditions remained unfavorable due to insufficient new contracts to replace completed infrastructure projects.
"This seems to be related to the slow progress on planned projects and the lags between project design and development and their transition to construction," the study said.
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Darlington
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