Advertisement
The seasonally adjusted Australian Industry Group/ Housing Industry Association Performance of Construction Index is out and increased by 1.2 points in November to 37.0. The index has now remained below the critical 50-point level (that separates expansion from contraction) for 30 consecutive months:
The sector is in recession but is shrinking at a slower pace, hinting at some second derivative green shoots. There was some pick up residential construction sectors, the area everyone is looking to for growth:
Advertisement
And although new orders fell:
There was some handoff from engineering to residential contruction:
It’s all still pretty gloomy but headed in the right direction at least.
Advertisement
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.
Advertisement