The Australian Industry Group and HIA Australian Performance of Construction Index (Australian PCI®) rose by 2.6 points to 47.9 points in August (seasonally adjusted). This indicates contraction in activity across the construction sector for the third month, but the rate of decline eased compared to July. Results below 50 points indicate contraction in the sector, with lower results indicating a stronger rate of contraction.

• Three of the four construction sectors – housing, apartments and commercial
  – were in contraction in August. Activity improved in the engineering and
  commercial sectors.
• Demand side pressures – arising from rising interest rates and lower
  customer demand – are an emerging concern for respondents across all
  sectors.
• Supply side constraints, including labour and input costs, continue to inhibit
  the sector.
• The selling prices indicator eased but remains elevated.
• Capacity utilisation rose slightly to 82.6% and remains elevated as it has
  been since the start of 2021.