A boost in resource-related engineering construction helped ease the rate of decline across the national construction sector in December. Australian Performance of Construction Index (Australian PCI ) increased by 1.4 points to 41.0 in December although it remained below the 50 point level separating expansion from contraction for the 19th consecutive month.
While engineering construction was back in positive territory (51.3), house building continued to fall (32.9). Meanwhile, apartment building recording its slowest decline in five months with a lift of 9.9 points to 33.3 and commercial construction was 32.8.
Australian Industry group director public policy Peter Burn, said: "The broader multi-speed economy phenomenon is playing out within the Australian construction industry with a clear divide between the expanding engineering construction sub-sector and the still-contracting commercial and residential construction sub-sectors. The increased pace of contraction in the house building sub-sector in December remains deeply concerning. Nevertheless, the easing of the pace of contraction in overall activity and in new orders across all sub-sectors, serve as glimmers of hope that 2012 may see a return to more balanced growth across the industry."
Housing Industry Association chief economist Harley Dale said: "A less marked rate of contraction in the national construction industry in December 2011 should in no way disguise the very weak residential and non-residential building conditions. The Australian PCI has now contracted for nineteen consecutive months.
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