Construction Industry shows growth in January
The Australian construction sector has recorded its most significant growth in over two years, ending a prolonged downturn and signalling potential recovery, according to the latest Australian Industry Group Performance of Construction Index (PCI).
Encouraging Signs Across All Construction Sectors
The PCI report, based on a survey of 120 construction companies, highlights broad-based improvements across the industry:
“The national construction industry expanded in January, driven by a stronger rate of increase in house building and improved conditions in the apartment, engineering and commercial building sectors.”
This growth marks a welcome shift from the sector’s extended period of contraction. The last time the construction index signalled expansion was in January 2008, which, in hindsight, represented the peak of the previous cycle before demand steadily declined from 2006 onwards.
A Recovery from the GFC Fallout
The impact of the Global Financial Crisis (GFC) in 2008 and 2009 brought the sector to a near standstill, halting new developments amid economic uncertainty and tightened credit conditions. With activity now rebounding, especially in residential construction, the data suggests renewed investor and developer confidence.
If the upward trend continues, it could provide a much-needed boost for businesses in and around the construction sector, including trades, suppliers, developers and financial services.
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