The Performance of Construction Index for Australian Industry Group/Housing Industry Association was up by 0.8 points at 52.6 for July 2014.
Any reading at 50 and above on the index points at growth and development in the sector. The figure of 52.6 proves that growth has indeed been at a higher speed than expected.
Peter Burn, Group Director for Ai Group stated that the activity for both, residential and commercial is building up with full steam. This growth is seen despite the slowdown in engineering construction as investments seem to be bleak in the mining-related projects.
The construction segment of house building was going strong, and the apartment construction growth seemed steady too. It is the commercial construction that has boosted the construction activity for Australia. According to Harley Dale, the growing construction sector is good contributor to the economy.
He further added that rise in the construction activity will help the labor market outcomes, and the overall economic growth in the fiscal year 2014-2015. The new home building activity will render a good recovery for the economy.
Dr. Dale further added, though the PCI data indicates a rise in the building approvals, they must remain at remarkably high levels for a while.
Only the engineering subsector posted a decline in the month of July.
Out of all the sectors, the commercial subsectors reported the highest growth at an index level of 61.2 points, up by 11.4 points. This was followed by houses at 53.2 points, and apartments at 51.9 points.