The Australian Construction Sector Has Finally Seen Growth for the First Time in Five Months

construction sector in Australia
Image Source: Stilgherrian, CC BY 2.0

According to the Performance of Construction Index (PCI) by the Australian Industry Group (Ai Group), the country’s construction sector has grown for the first time in five months in February.

As reported, the PCI increased to 53.1, which is above the 50—the level that separates contraction from expansion. Since the middle of last year, the pace of improvement is said to be the strongest, driven by a high level of activity in housing, commercial building, and engineering sectors. This factor also helped offset the ongoing weakness in apartment construction.

Experts believe that the trend is an indication that the high-rise construction boom the country has experienced is already shifting to the other sub-sectors of the industry. A spokesperson from Ai Group said:

“House building recorded a strong resurgence in February with activity expanding at its highest rate since June 2016.

“Stronger conditions were also evident in commercial and engineering construction with activity in both sectors lifting into positive territory after declines over the previous five and four months, respectively.”

The Ai Group also stated that the recovery in the engineering sector was attributed to an improved inflow of infrastructure projects, especially rail and road works in the east coast region. Aside from this, there is also an upturn in the new orders sub-index and an increase in deliveries from suppliers.

Generally, these developments reflect a solid recovery in the engineering and construction sector in Australia.