PCI slides away

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The AiG Performance of Construction Index for August is out today and shows further deterioration:

Not much surprise here given this accords with ABS and HIA data, especially since it was new orders that drove the dip in all three. I have questioned the efficacy of the engineering component of this index before but it’s now hitting new lows:

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But there is no doubt that overall index does track ABS employment statisitcs for the sector. Both peaked at the same time:

So it looks like more job losses ahead for construction:

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Pci Report August 2012 Final

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.