Construction sector growth hits three year high

 

The national construction sector recorded its strongest reading in almost three and a half years according to the latest Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI). This strong reading was driven by a return to growth in the house building and apartment building sub-sectors.

According to Australian Industry Group Chief Economist, Julie Toth, the construction sector is close to stabilising.

"The construction sector is closer to stabilisation than at any time since mid-2010. The housing and apartment sectors are driving the industry's improved performance on the back of lower interest rates and a lift in buyer sentiment.”

“With new orders increasing for the first time since May 2010, there are grounds for cautious optimism that the current improving trend can be sustained in coming months,” Ms Toth said.

Housing Industry Association Chief Economist, Harley Dale, added, "the move into positive territory for the detached house and apartment sub-indices of the Australian PCI is a very encouraging development, and the rise above the 50 mark for new orders is an important outcome.”

Posted by Charles Tarbey on 15/10/2013 at 12:00 AM | Categories:

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