Building activity extends drop to two years

Australian building activity has contracted for its 24th consecutive month, based on weak commercial activity and new orders, a private study has found.

The Australian Industry Group-Housing Industry Association's performance of construction index (PCI) fell 0.2 points to 34.7 in May.

A reading below 50 indicates a contraction in activity.

Advertisement: Story continues below

Commercial construction was the weakest sub-sector, with its sharpest fall in three years, down 9.8 points to 25.4.

Both house and apartment building remained weak, though the apartments were slightly improved.

The index of house building activity fell 5.1 points to 28.2 - which was the steepest index decline since September 2011.

Apartment building continued to decline, but at a slower rate as the index of activity in that sector rose 3.8 points to 26.7.

New orders continued to be in contraction mode, rising only slightly to 33.7 for May.

Engineering was the best performing sub-sector, but the rise of 0.4 points to 41.3 still left it in a downturn.

Originally posted here:
Building activity extends drop to two years