Australia’s AIG Construction Index rose to 43.0 in June 2019 from 40.4 in the previous month. Despite the three-month high, the sector remained well below the 50-point threshold, pointing to a contraction in construction activity for the tenth straight month. Activity (+5.2 points to 44.9); employment (+4.1 to 43.6) and new orders (+2.1 points to 41.5) increased, still remaining in negative territory. Meanwhile supplier deliveries dropped further (-3.5 points to 41.5). On the price front, input costs declined 2.0 points to 67.4 and selling prices plunged 4.6 to 31.6. Meantime, average wages stood at 60.9 while capacity utilisation fell 2.6 percent to 75.2 percent. By sector, house building was the weakest performing sector (36.3 points trend), contracting for an eleventh month. Construction Pmi in Australia averaged 46.33 Index Points from 2005 until 2019, reaching an all time high of 60.50 Index Points in July of 2017 and a record low of 29.24 Index Points in December of 2008.
Construction Pmi in Australia is expected to be 47.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Construction Pmi in Australia to stand at 51.50 in 12 months time. In the long-term, the Australia Construction PMI is projected to trend around 50.00 Index Points in 2020, according to our econometric models.