Australia’s AIG Construction Index dropped to 40.4 in May 2019 from 42.6 in the previous month. The reading pointed to the steepest contraction in the construction activity since June 2013, as new orders fell at the sharpest pace in six and half years (-5 points to 39.4) and activity declined 1.5 points to 39.7. Also, supplier deliveries went down 1.4 points to 45. In contrast, employment edged up 0.3 points to 39.5, still it remains in negative territory. On the price front, input prices accelerated (+7.7 points to 69.4) and output cost advanced (+4.4 points to 36.2). Additionally, average wages jumped 5.2 points to 60.9 and capacity utilisation inched up 0.2 percent to 77.8. Construction Pmi in Australia averaged 46.38 Index Points from 2005 until 2019, reaching an all time high of 60.50 Index Points in July of 2017 and a record low of 29.24 Index Points in December of 2008.
Construction Pmi in Australia is expected to be 45.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Construction Pmi in Australia to stand at 53.00 in 12 months time. In the long-term, the Australia Construction PMI is projected to trend around 50.00 Index Points in 2020, according to our econometric models.