PCI underlines the RBA’s steep challenge

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This morning’s AiG Performance of Construction Index (PCI) was a sobering look at the challenge ahead for the RBA in retrieving dwelling construction form its current slump as mining slows.

The headline result was another shocker:

Not quite a record but not far away. The sectoral split shows that engineering work is already slumping:

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I’ve never quite been able to figure out how the engineering component of the index is so low amid the greatest engineering construction boom in the nation’s history but anyway, it’s falling fast now.

New orders also stank:

And the internals sucked across the board:

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Some work ahead to turn this baby around.

Pci Sept Reportnew (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.