Australia’s Construction Sector Grows to 12-Year High Record

Construction activity has increased across Australia, reaching its fastest growth rate in 12 years.

The Performance of Construction Index rose 4.5 points to 60.5 in July, according to the latest data from the Australian Industry Group (AIG) and Housing Industry Association (HIA) released earlier this week. A reading above 50 indicates activity expansion, while distances from 50 measure the rate of expansion.

While mining construction continues its declining trend, the boom in infrastructure, residential building and commercial construction cancels out this wind-down. The value of construction entering the pipeline in July was estimated to be $21.7 billion, with infrastructure as the biggest contributor making up 55 per cent of it. Residential building – including apartments and units – follows at number two, accounting for 25 per cent of the value.

House building, which rose 3.5 points to 62.4, “recorded its fastest pace in three-and-a-half years on the back of a solid backlog of work and ongoing strength in demand,” the AIG and HIA said.

“In addition, the apartment building sector returned to modest growth after contracting in June, supported by a fourth consecutive month of expansion in new orders.”

Meanwhile, commercial construction increased by 9.8 points to 64.3, making it a record high in 12 years.

Sources: Business Insider Australia, SkyNews, ABC