Construction activity contracts: AiG

Following yesterday’s building approvals data from the ABS, showing a big dip as the construction boom reaches a peek, the AIG Construction PMI was just released and its in contraction territory at 46.8 points.

Now look at the building activity index and that reversal in apartment building, as engineering constructions starts to lose momentum:

The short notes from Forexlive (my highlights):

• Contraction occurred despite growth in the apartment and house building sectors
• Their strength outweighed by weak activity in the engineering and commercial construction sectors
• Apartment building expanded at its slowest pace in six months
• House building returned to growth, with activity rising modestly after two consecutive months of contraction
• Engineering construction declining at its steepest rate in three months
• Commercial construction also fell more sharply in December, with respondents noting patchy conditions across all of the major project categories
• For the construction industry as a whole, both activity and new orders recorded steeper declines in December, due to this weakness in engineering and commercial construction
• Construction industry employment stabilised following four months of growth, while slow growth in deliveries from suppliers was broadly unchanged from November

Should I insert Comical Ali here as well for the “everything is awesome” construction boom but with Glenn Stevens head? No, its too early to tell but signs are building for the boom to explode as egg in everyones face this year.