A private construction index has recorded its strongest growth
Housing Industry Association, Australia’s Performance of Construction Index (PCI) leaps 4.1 points to 59.1 in September 2014; Well above the 50-point mark is the strongest rate of growth registered in the past nine-year.
Recent surge in property prices have pushed Residential property sale to lead this expansion. The house building and apartment building subsectors recorded 61.7 and 60.5 points respectively. As, the Commercial construction rose by 3 points to 58.4. Engineering construction which includes mining and infrastructure indicating modest contraction with a rise of 4.6 points recorded 48.3 points on index.
The boom in Building sector has directly resulted into better employment sub-index which is at a record level of 62.8 with a leap of 9.1 points in September 2014. The easing of activities in engineering construction, has resulted in skill shortages and hence better wages to skilled and unskilled labour.
The industry looks very optimistic upon residential construction sector to continue expanding next year as well. Strong performance in residential and commercial construction with an improving trend in engineering construction would boost overall economy.