The Australian Industry Group and Housing Industry Association (HIA) Australian Performance of Construction Index (Australian PCI®) fell by 4.2 points to 46.2 points in June (seasonally adjusted). This indicates contraction in activity across the construction sector following months of positive or stable conditions. Results below 50 points indicate contraction in the sector, with lower results indicating a stronger rate of contraction.
- Three of the four construction sectors – housing, apartments and commercial – contracted in June. These sectors saw activity decrease significantly from the previous month.
- House builders reported higher interest rates constraining new orders, which fell significantly again in June.
- Labour shortages and delays in supplier deliveries continued to constrain activity. Builders reported ongoing concerns about increases in inputs (including fuel) and labour prices.
- Capacity utilisation moderated slightly to 82.4% but remains elevated as it
has been for much of 2021 and 2022.