A key index which is widely considered to be a reliable barometer of conditions within the building and construction industry in Australia has dropped back, leaving some commentators to question the strength of the recovery albeit with the majority remaining convinced a recovery of sorts has taken hold.

In January, the Performance of Construction Index (Australian PCIᶱ) published jointly by Australian Industry Group (Ai Group) and Housing Industry Association (HIA) eased back 2.6 points from 50.8 to 48.2 – slightly below the 50.0 mark separating improving conditions to deteriorating conditions. Driving the contraction was a renewed decline in…