Construction PMI fades as well

The national construction industry continued to decline in April, at a rate of contraction that was broadly unchanged from the previous month.

• The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) registered 45.9 points in April, just 0.3 points below the reading in March.
• This is the fourth consecutive month that the Australian PCI® as been below the critical 50 point level that separates expansion from contraction, following the industry’s return to growth in the final quarter of 2013.
• Most positively this month, house building activity continued to expand with its rate of growth picking up in the month on the back of stronger new orders. A solid upturn in apartment building activity (after three consecutive months of decline) also helped to soften the overall decline in industry activity. Weighing heavily on industry conditions in April however, was a steeper rate of contraction in engineering construction and a decline in commercial construction following the sector’s expansion over the previous two months.
• House builders were generally positive this month, reporting a rise in customer enquiries and an improvement in buyer confidence, particularly among investors. Respondents in other sectors however, pointed to continuing tough conditions, with reports of limited investment activity by clients, a lack of public sector tenders and intense competition for the available work. For engineering construction businesses, project completions and a winding down in mining related construction activity were noted as the major factors inhibiting activity.

That pretty much sums up the entire economy. Full report here.