Continued growth in the number of residential building projects through August lifted the overall pace of decline in the construction industry, Australian Industry Group (AIG) reported this week.
The seasonally adjusted AIG/Housing Industry Association Performance of Construction Index (Australian PCI®) rose by 2.9 points to 42.4 (remaining below the 50 point level separating expansion from contraction).
AIG Associate Director, Economics and Research, Tony Pensabene, said that reductions in engineering and commercial construction were the main negative influences on activity in August.
"However, house building projects exhibited further resilience and increased for a second consecutive month, while the pace of decline eased considerably in the apartment sector."
HIA Chief Economist, Dr Harley Dale remarked that the underlying house building index of the Australian PCI® is a shining light for the construction industry.
"It is back in positive territory and along with a range of leading indicators is signalling a recovery in new house construction in 2009/10", Dale said.
"The early stages of the recovery through the second half of 2009 will be slow, but at least we're moving in the right direction."