The Ai Group and HIA Australian Performance of Construction Index (Australian PCI®) rose by 4.9 points to 48.2 points in November (seasonally adjusted). This indicates contraction in activity across the construction sector for the sixth month but the rate of decline eased compared to October. Results below 50 points indicate contraction in the sector, with lower results indicating a stronger rate of contraction.
Two construction subsectors contracted and two were stable in November. This is the third time none of the subsectors in the Australian PCI® recorded growth since August 2021.
The decline in the new orders index in the Australian PCI® eased compared to October lifting by 2.1 points to 45.3 points in November (seasonally adjusted). New orders increased for engineering but contracted for housing, apartments and commercial activity. Interest rate increases and uncertainty about the economic outlook kept orders in contraction as constructors reported a slow-down in interest and customers delaying or cancelling projects.