Construction PMI holds up

From the AIG:

• The Ai Group/HIA Australian Performance of Construction Index (Australian PCI^®) expanded for a third month in October, at a rate broadly unchanged from September (up 0.2 points to 52.1).

• The construction activity sub-index contracted slightly in October (down 1.2 points to 49.5) after two months of expansion, but new orders (up 1.1 points to 53.5) and employment (up 2.3 points to 54.9) both expanded for a third month. Supplier deliveries dipped slightly into negative territory (down 2.5 points to 49.6).

• Apartment building activity underpinned the broader industry’s positive result, lifting again to record its fastest pace of growth (up 9.2 points to 72.4) in the ten-year history of the Australian PCI^®. House building, however, contracted for the first time in five months, falling sharply from September’s 11-month high (down 9.8 points to 47.0).

• Engineering construction contracted for a 16^th month, but at a slower rate attributed to a boost in infrastructure work on the east coast (up 7.5 points to 44.1). Commercial construction moved closer to stability as respondents noted stronger activity in various key building categories (up 0.9 points to 49.0).

• Growth in the wages sub-index continued in October, rising 1.7 points to 63.2, while the pace of growth in input costs eased slightly (down 1.7 points to 68.9). The gap between the two pricing series remains significant as selling prices continued to contract, if at a slower rate (up 3.2 points to 47.6).

Cutting through the guff, two charts tell you what this is about. Activity:

And new orders:

Apartments! When they go, the boom goes. Full report.