The construction industry’s 13th consecutive month of expansion was supported by continued rises in both activity (up 2.3 points to 56.8) and new orders (up 0.1 points to 51.8). This was associated with a stronger increase in deliveries from suppliers (up 5.4 points to 58.3), while the employment sub-index increased at its fastest pace in seven months (up 0.8 points to 58.8).
All four construction sub-sectors expanded in February, with house building the strongest performing area of industry activity (up 9.8 points to 61.8). Apartment building also showed improvement, expanding at a relatively robust rate after broadly stable conditions over the previous two months (up 6.2 points to 56.9).
Engineering construction also gained further momentum (up 1.0 point to 54.5), while commercial construction remained in positive territory for a 10th consecutive month (down 1.1 points to 57.8).
The input prices sub-index lifted 2.6 points to 77.0 in February, while growth in wages continued at a broadly unchanged rate (down 0.2 points to 64.1). The selling prices sub-index decreased by 6.2 points to 52.7, suggesting that cost pressures are being passed on, but not broadly given strong market competition.
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.
