Australia’s construction industry experienced soaring activity levels in July according to the Australian Industry Group (Ai Group).

Ai Group’s latest Performance of Construction Index (PCI) shows construction activity levels improved at the fastest pace in 12 years in July, jumping 4.5 points to 60.5, which is the highest level since the survey began in September 2005.

The PCI, which is produced in conjunction with Australia’s Housing Industry Association (HIA), measures changes in activity levels across Australia’s construction sector from one month to the next.

The latest report found the upturn in industry conditions reflects expanding activity across all four major construction sectors, with commercial construction and house building the major drivers of growth in July.

The PCI states that house building activity rose at the fastest pace of growth in three and a half years and commercial construction expanded for a third consecutive month. Apartment building activity also recovered ground after six consecutive months of increases in new orders, while greater government infrastructure spending helped boost the performance of the engineering construction sector.

According to survey respondents, these strong performances were attributed to an improvement in demand conditions thanks to new orders and an increase in tendering opportunities.

The full report can be read here.