Housing Activity

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<div>Housing activity falls in August were only partially offset by the growth in apartment building, commercial construction and engineering construction accrding to the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index.</div>
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<div>The index noted housing activity fell 13.8 points to 41.1 in August with apartment building up 8.8 points to 56.8, commercial construction up 1.4 points to 53.2 and engineering construction up 6.9 points to 55.5.</div>
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<div> <br>Peter Burn, Ai Group head of policy said very weak conditions in the house building sub-sector overshadowed the positive news for apartment building, commercial construction and engineering construction in August and pulled the broader construction industry down for the month.</div>
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<div>"While mining-related work continues to wind down, in August this trend was offset by a lift in other engineering construction work – including in rail and road infrastructure. </div>
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<div>"A pull-back in employment in August after two months of expansion was the lowest reading for this sub-index in five months. Ominously for the near-term, alongside the fall in employment, both new orders and deliveries were negative for the sector as a whole."</div>
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<div>Harley Dale, HIA chief economist said we are at the peak of the residential construction cycle, but the Australian PCI suggests there is not enough non-residential activity coming along behind.</div>
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<div>"New home construction has been the kingmaker of the Australian economy in recent years – it’s a shame policy makers have failed to respect its importance," he said.</div>
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<div>"When new home construction inevitably peaks by 2016/17, people will look to a plan for further growth. Right now there seems to be nothing, because housing is the convenient bedrock and nobody has the vision to look beyond the short term."</div>
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Housing Activity

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