Australia’s construction sector has soared in July, gaining 4.5 points to 60.5 and reaching its highest level in 12 years, according to the Australian Industry Group/Housing Industry Association’s latest Performance of Construction Index (PCI).
The PCI measures the performance of the construction industry month to month.
Any figure above 50 points to expansion, anything below is a contraction.
The latest PCI figures are the highest since the survey began in 2005.
The major drivers of growth were house building (up 3.4 points to 62.4) and commercial construction (up 9.8 points to 64.3)
Growth in new orders also accelerated, rising 2.7 points to 64.6, suggesting there was a significant amount of work in the pipeline.
Ai Group Head of Policy, Peter Burn said infrastructure work, a resurgent commercial construction sub-sector and ongoing healthy levels of activity in residential building were combining to more than offset the further wind-down of mining-related work.
“The long-awaited pick-up in commercial construction seen over the past three months is particularly welcome in light of the anticipated wind-down in apartment building from the very high recent levels and suggests that the national construction industry will continue to play a leading role in the economy for some time to come,” Mr Burn said.