Construction activity strongest in a year

According to Property Council of Australia, the seasonally adjusted figures for Australia's national construction industry rose 6.8 points to 55.2 — above the 50.0 point level separating expansion from contraction.

The return to growth in the "Australian Industry - Housing Industry Association joint Performance of Construction Index' (Australian PCI) signalled the strongest growth since June 2006, largely underpinned by the non-residential sector.

Ai Group chief executive, Heather Ridout said the latest results were encouraging given the continued solid growth of the non-residential building markets, but there was still some way to go for the housing industry: "The growth we are seeing in house building is clearly off a low base and the pick-up cannot be interpreted as a turnaround in the industry."

The monthly index, based on sales, orders/new business, deliveries and employment across the residential, engineering, non-residential (commercial) and apartment sectors saw growth across the board, with the biggest performer being commercial construction, underpinned by a strong upturn in levels of new business.

House building activity showed signs of life, increasing by 13.9 points in September to 59.8, the highest rate of growth in two years and the first rise since April 2007.