Oz construction market improves
According to information provider Australian Industry Group (AIG), the Australian Performance of Construction Index (Austra?lian PCI) increased by 1.4 points to 41 in December 2011, compared to November, although it remained below the 50 point level separating expansion from contraction. The Australian PCI for December 2010, stood at 47.5 points. The December 2011 PCI was boosted by engineering construction, which rose by 5.7 points to 51.3. On the contrary, the residential and commercial construction sub-indexes each continued to contract but at a slower rate, with a steep fall in house building. The Australian PCI last breached the 50- point threshold in April, 2010, when it reached 57.5, but dropped again below 50 points in May and has remained there ever since. Harley Dale, Chief Economist at the Australian Housing Industry Association, said, ?There is a clear need not only for further interest rate relief but also for government action in terms of both shorter-term stimulatory measures and a re-invigorated policy reform.?