Construction fall sharpest in 6 years: PCI

A slump in demand for new houses and apartments in July caused the sharpest contraction in home building in six years, a survey of businesses in the construction industry suggests.

The Australian Industry Group/Housing Industry Association Performance of Construction Index (PCI) report released on Wednesday said activity fell 3.9 points on the previous month to 39.1 – a slide that leaves the measure well below the 50-point mark separating expansion and contraction.

“Looking ahead, conditions look more fragile than they have for some time with new orders dropping further into negative territory driven by particular weakness in the pipelines of new work in the housing and apartment sectors,” Ai Group policy head Peter Burn said.

AAP

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