Australian Construction Showing Signs of Improvement

Australian Construction Showing Signs of Improvement
A builder works on a house under construction in a file photo. (Ian Waldie/Getty Images)

Construction is showing signs of improving across the country with the exception of Victoria, where activity has sunk to the levels seen when the coronavirus pandemic first hit.

Overall, the Australian Industry Group-Housing Industry Association performance of construction index rose 7.3 points to 45.2 in September.

It indicates the industry is contracting at a slower pace compared to August with the index remaining below the 50 points.

Even so, conditions improved in September in all states except Victoria, where its index sank to extremely low levels similar to April and May's record lows.

Ai Group head of policy Peter Burn said there are gathering signs of a tentative construction turnaround.

"Outside of Victoria, construction conditions improved marginally in September with more distinct gains in South Australia and Western Australia," he said.

"In contrast, Victorian construction remained in a deep trough."

Notably, house building activity entered into positive territory for the first time since February.

Colin Brinsden in Canberra