The AIG Performance of Construction Index is out today with more bad news for the sector:
The Australian Industry Group Performance of Construction Index (Australian PCI®) in conjunction with the Housing Industry Association registered 34.8 in June, just 0.1 points above the reading in May. The index has now remained below the critical 50 point level separating expansion from contraction for 25 consecutive months.
This is getting kind of silly. This is the chart that bugs me:
I don’t dispute that dwelling construction is in a slump but the engineering line is plain wrong. The recent ABS job vacancies release makes the point:
Construction vacancies have bounced nicely after a post stimulus stumble, largely, no doubt, on the back of the engineering construction associated with the mining boom.
This index needs a renovation.
