The Australian Industry Group and HIA Australian Performance of Construction Index (Australian PCI®) rose by 4.9 points to 48.2 points in November (seasonally adjusted). This indicates contraction in activity across the construction sector for the sixth month but the rate of decline eased compared to October. Results below 50 points indicate contraction in the sector, with lower results indicating a stronger rate of contraction.

• Two construction subsectors contracted and two were stable in November. This is the third time none of the subsectors in the Australian PCI® recorded growth since August 2021.
• The employment index rose into weak expansion as absenteeism eased.
• Demand-side pressures, including rising interest rates and economic uncertainty, are dampening construction sales and new orders.
• Supply-side constraints, especially a shortage of skilled trades, continue to inhibit activity, but there are signs of materials supply chain pressures easing.
• The selling prices indicator expanded at a slower rate compared to the previous two months. Input prices jumped up to 91.9, indicating the gap in growth between prices widened.
• Capacity utilisation rose slightly to 82.9% and remains elevated as it has been since the start of 2021.