Construction downturn eases
The latest Australian Performance of Construction Index has shown that the nation’s containing construction downturn has eased off in the final month of 2012 to end at 38.8, 1.8 points stronger than the previous reading, with readings below 50 points indicated a contraction, where the distance from 50 indicating the strength of the decline.
Co-published by the Australian Industry Group (AI Group) and the Housing Industry Association (HIA), the index found that the pace of decline across new orders and construction activity had contributed to the strong results.
AI Group’s Director Public Policy, Peter Burn, said that despite the positive findings, the sector is still struggling after 31 months of consecutive contraction.
“Australian construction activity ended 2012 largely as it began, deeply entrenched in negative territory. Not surprisingly, given the toughness of business conditions, the industry is continuing to reduce employment. There are, however, some signs that 2013 might see more positive conditions,” Mr Burn said.
The full report can be found here