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Australian AiG construction index at 9-yr high

FXStreet (Bali) - Australia's AiG Performance of Construction Index rose to 59.1 in September from previous 55 in August, as new orders and activity keep expanding strongly.

Key findings

"The national construction industry maintained its solid growth momentum in September with new orders and activity continuing to expand strongly. This led to the highest rates of increase in employment and deliveries from suppliers since the survey began in September 2005."

"The seasonally adjusted Australian Industry Group/ Housing Industry Association Australian Performance of Construction Index (Australian PCI®) increased by 4.1 points to 59.1 points in September."

"This was the fourth consecutive month that the Australian PCI® has been above the critical 50 points level that separates expansion from contraction. Moreover, it signalled the industry’s strongest pace of expansion in the nine years since the survey’s inception."

"This further upturn in industry conditions reflected expanding activity across most major sectors of the industry. House building was the strongest performing sector with its rate of growth lifting to its highest level so far in 2014. Continued strength was also evident in the apartment building sector (despite a slower rate of increase in the month) while growth in commercial construction picked-up in September. In contrast, engineering construction activity continued to contract, albeit at a slower rate."

"Businesses reporting an improvement in activity generally attributed this to stronger levels of demand and an associated increase in new orders intakes and tender opportunities. In addition, house and apartment builders indicated that customer enquiries and buyer confidence remained firm, with activity continuing to benefit from solid investor activity. The main factors weighing on activity were a lack of public sector tenders and a decline in mining-related engineering construction activity."

Australia AiG Performance of Construction Index rose from previous 55 to 59.1 in September

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