PCI crunched again

Thursday, 7 June 2012

The Australian Industry Group’s Performance of Construction Index (PCI) is out today and shows move deeper into recession for the sector:

As I’ve said before, I am no fan of this index. In fact, it has such a clear bias towards dwelling construction that it makes almost no sense given we’re in the midst of a once in hundred year construction boom.

Still, I guess it shows the degree of weakness in regular building. Time for it to be change or be reframed as a dwelling construction index.

Pci Report May 2012 Final (1)

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.