AIG Construction Index is looked upon in Australia and this is different from Europe and US. The only country out of the five areas we’re analyzing that is looking at the construction index is UK, and the explanation may come from the similarities between the two economies.
It is still a survey based on managers from the construction industry responding questions about the current level of business activity, inventories, new orders, etc. Based on the responses, the index shows values interpreted regarding to the fifty level: higher than fifty means industry expansion and lower than fifty means industry contraction.
This indicators that have such a “line in the sand” interpretation are easy to interpret and visualize, and by looking at the past date, like we are doing for the past six month and try to identify trend, one can have an educated guess about the level of that specific industry, in this case the construction industry.
The most important things to take into consideration when looking at the AIG Construction Index indicator in Australia are:
- release date: monthly, on the fifth business day after the month ends;
- release time: 23:30 GMT, during the Asian trading session;
- first tier economic data;
- brings important volatility.