Construction expands for the first time in five months

Posted by Design & Construct on 13-Mar-2017 11:35:27

In Construction

The Australian construction industry has once again returned to growth in March.

The Australian construction industry has once again returned to growth in March. The Australian Industry Group (AIG) and the Housing Industry Association’s (HIA) Performance of Construction Index (PCI) has increased by 5.4 points to 53.1. The AIG and HIA PCI is a seasonally adjusted national composite index based on indexes for activity, orders, new business, deliveries and employment.


The PCI measures changes in Australian construction industry activity from month to month and has a scoring index of 0 to 100. A Reading above 50 points indicates that construction activity is expanding and if below 50, that it is declining. The distance from 50 indicates how quickly activity levels improved or declined compared to the previous month.



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According to AIG head of policy Peter Burn, the construction sector saw healthy growth in new orders for house builders with some additional expansion experienced among engineering constructors.


Overall activity in the building industry has risen for the first time in five months. This was assisted by an increase in house building of 10.7 points to 60.9 points and commercial and engineering construction rising by 11.1 points to 53.9 points.




House building had a much-needed revival in February, with activity expanding at its highest rate since June 2016. “The gem in today’s result — for manufacturers, suppliers, sub-contractors, builders and the many other market participants — is the relatively strong showing for detached housing,” said HIA Chief Economist, Harley Dale.


Australian PCI - key findings for February:

  • activity up by 7.4 points to 54.7
  • houses up by 10.7 points to 60.9
  • apartments down by 0.4 to 46.1
  • commercial up by 6.1 to 53.6
  • engineering up by 11.1 to 53.9
  • new orders up by 3.6 points to 51.2
  • employment up 6.2 points to 53.5
  • deliveries up 2.9 points to 52.7
  • input prices up 10.5 points to 76.1
  • selling prices up 0.7 points to 56.0
  • wages up by 2.8 points to 63.0
  • capacity utilisation % up by 7.3 points to 75.8


According to the HIA, the result in February indicates the construction industry and the broader Australian economy is still moving forward and that new home construction activity will hold up very well in the short term.

Regardless of where you are in Australia, construction is an industry that is moving in the right direction.

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AI group. (2017). Retrieved 8 March2017 from 

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