Construction PMI sags further

From the AIG comes the third of its PMIs for February:

The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) registered 43.9 points in February 2015 (readings below 50 points indicate contraction). This was a decrease of 2.0 points from January, indicating a slightly steeper rate of decline for the construction industry and a fourth consecutive month of contraction, in response to a further weakening in new orders.
 Falls in activity, employment and deliveries from suppliers continued in February, albeit at broadly unchanged rates. New orders contracted at a steeper rate.
 Weighing heavily on industry conditions in February were sharper falls in mining-related engineering construction and commercial building, reflecting significant contractions in new orders across both these key construction sectors.
 A return to growth in apartment building was the brightest spot in February’s overall decline in construction activity. The house building sector remained in negative territory, but its rate of decline moderated, following a loss of momentum in January.
 The decline in the Australian PCI® in February reflected reports of fewer new contracts and project completions in 2015, most notably in engineering and commercial construction. A lack of public sector tenders and soft private sector investment were also cited as inhibiting activity in the engineering and commercial construction sectors.
 Reports from house and apartment builders indicated an improvement in customer enquiries and buyer confidence in February. However, respondents also pointed to a highly competitive market environment for housing and slower new orders.

Ghost city growth and that’s all. Full report.