Australia’s AIG Construction Index dropped to a five month low of 42.6 in April 2019 from 45.6 in the previous month, as housing activity, commercial construction and apartment building work continued to decline. New orders declined for the eighth straight month (-0.1 points to 44.4); employment fell at the steepest rate in almost six years (-6.9 points to 39.2); and activity went down 4.5 points to 41.6. On the other hand, supplier deliveries rose 0.6 points to 46.4, still remaining in contraction territory. On the price front, input cost inflation eased and output price inflation dropped further, amid competition among builders in securing work. Meantime, average wages fell 3.5 points to 55.7 while capacity utilisation rose 1.1 percent to 77.6. Finally, constructors were concerns regarding the slowdown in economic growth; and cost pressures in the delivery of construction projects due to cost of energy, commodities and imported construction materials. Construction Pmi in Australia averaged 46.38 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 45.00 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 53.00 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.