Australia October Performance Of Construction Index Up 0.1 Points To 50.9

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Friday, the Australian Industry Group and the Housing Industry Association announced that Australia's Performance of Construction Index stood at a seasonally adjusted 50.9 in October, compared to the 50.8 reading in September. A reading above 50 indicates expansion, while one below 50 suggests contraction. This is the second straight month in which construction industry has expanded.

The overall activity index rose 0.2 points to 50.2 in October. The apartment construction sub-index surged to expansion territory at 53.2 in October from 46.3 in September, while the housing construction sub-index fell sharply to 51.2 from 64.4. Commercial construction contracted at a faster pace, with the corresponding sub-index falling to 40.1 from 48.6.

The new orders sub-index dropped to 48 in October, after posting growth in September for the first time since February 2008. Capacity utilization fell 4 percentage points to 71.2%.

Employment in the construction sector rose further, with the sub-index at 52.6 after posting 51.8 in the previous month, while growth in wages slowed, with the sub-index falling to 52.6 from 55.3.

The input price sub-index eased to 69.5 from 70.6, reflecting the appreciation of the Australian dollar. On the other hand, output prices increased for the second straight month with the index at 52.6 compared to 55.3 in the preceding month.

The Performance of Construction Index measures the health of the construction sector, with the index based on a sample of nearly 100 companies.

Friday, the Australian Industry Group and the Housing Industry Association announced that Australia's Performance of Construction Index stood at a seasonally adjusted 50.9 in October, compared to the 50.8 reading in September. A reading above 50 indicates expansion, while one below 50 suggests contraction. This is the second straight month in which construction industry has expanded. (Market News Provided by RTTNews)