The AIG/HIA Australian Performance of Construction Index increased to 43.8 in February 2019 from 43.1 in the previous month. The reading pointed to the sixth consecutive contraction in construction activity. Employment (+1.6 points to 46.0) and activity (+2.2 points to 41.6) rose, still remaining in negative territory. Meantime, new orders (-0.9 points to 43.2) and supplier deliveries (-1.1 points to 45.4) declined. On the price front, input cost dropped 5.9 points to 68.7 and selling prices fell 3.5 points to 40.7. Wages decreased 4.1 points to 59.6 and capacity utilisation went down 2.1 percent to 75.5 percent. Construction Pmi in Australia averaged 46.41 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 46.60 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 51.00 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.