The Australian Industry Group and HIA Australian Performance of Construction Index (Australian PCI®) moderated by 0.6 points to 55.9 points in April (seasonally adjusted). This indicates expansion in activity across the construction sector for a third month, albeit with the rate of growth moderating slightly from March 2022. Results above 50 points indicate expansion in the sector, with higher results indicating a stronger rate of expansion.

• All four construction sectors – housing, apartments, commercial and engineering – continued to expand in April. However, the high rates of growth seen in previous months eased, particularly in the commercial sector.
• Escalating input costs affected builders more urgently across April, and the effects are expected to be ongoing. Supply disruptions, input price increases and labour shortages continue to be key construction inhibitors.
• House builders reported concerns about increased prices and potential interest rate increases leading to hesitation from customers. Capacity utilisation in the sector reached a series high of 86%, it has been elevated for much of 2021 and 2022.