The Australian Industry Group/Housing Performance of Construction Index declined by 2.5 points to 49.3 points (seasonally adjusted) in September.

This fall in the Australian PCI to a level below the critical 50-points threshold (that separates expansion from contraction) signalled the first contraction in overall construction industry conditions in 20 months.

The activity sub-index expanded modestly in September after moving into mild negative territory (i.e. below 50 points) in August. However, the new orders sub-index contracted amid weaker demand conditions across all four industry sub-sectors. This was associated with a further decline in employment which recorded its sharpest fall in 21 months