Australia’s Construction Industry continues to expand, according the the latest release of the Australian Industry Group and Housing Industry Association’s Performance of Construction for July which printed 52.6, up 0.8 points from last month.
While engineering construction fell the sub-sectors of the index are showing the kinds of strength that the RBA is hoping for with low rates.
The survey showed that “consistent with the recent uplift in non-residential building approvals, commercial construction recovered strongly to reach its highest level in six and a half years (up 11.4 points to 61.2). The apartment building sector grew (up 2.7 points to 51.9) while house building continued to expand (down 3.4 points to 53.2). Engineering construction, however, returned to negative territory (down 3.9 points to 47.2)”.
On balance that is good news and HIA Chief Economist Harley Dale said that the advancement of the construction industry would flow through to employment and the economy as a whole.
AiG Director of Public Policy Peter Burn echoed the positive comments noting:
The residential and commercial construction sub-sectors are building a head of steam with a welcome strengthening in activity, an upturn in employment, further growth in new orders and more attractive selling prices. In July, momentum in these sub-sectors ensured the overall construction sector remained in positive territory despite the ongoing slow-down in engineering construction as investment in mining-related projects fades.
This is really positive economic news for Australia’s necessary transition away from the mining investment boom.
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