Construction PMI still weak

The AIG construction PMI is out and completes a hat-rick of disappointments in the indices, remaining in recession for a third month:

The national construction industry continued to decline in March with the seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) registering 46.2 points in the month (readings below 50 points indicate contraction). This was an increase of 2.0 points from February, indicating a milder rate of contraction.
It is the third consecutive month that the Australian PCI® has been below the critical 50 points level that separates expansion from contraction, following the industry’s return to growth in the final quarter of 2013.
The rate of contraction in the Australian PCI® moderated in March due to slower declines in both new orders and activity.
By sector, commercial construction expanded for a second consecutive month, albeit at a slower pace than in February. House building activity stabilised, with the sector’s rate of growth only marginal and the slowest in seven months. In contrast, further contraction was evident in engineering construction (although at a less pronounced rate) and apartment building activity.
Respondents pointed to a continuation of tough market conditions, citing a low level of incoming work to replace existing contracts, a lack of new tender opportunities and slow public sector building activity. Among engineering construction businesses, project completions and a reduction in mining related construction activity were noted as the major factors inhibiting activity. House builders pointed to some moderation in new orders compared to earlier in the year, although investor activity remains robust.

Some hope in new orders:

But lousy overall especially since this is supposed to be our new boom:

Full report.