The disruptions from Omicron caused a contraction in the construction industry during the summer holidays, reversing the November recovery, according to the Australian Performance of Construction Index. The index fell 11.1 points to 45.9 in December and January, where readings below 50 indicate a contraction in activity, with lower results meaning a faster contraction. The Australian Industry Group’s Chief Policy Advisor, Peter Burn, said commercial and apartment building construction reported the worst reduction in activity, and the fall in house building was less dramatic. “This latest downturn was driven by disruptions to labour supply, material supplies and business and household confidence associated with the rapid spread of the Omicron strain,” Burn said. As labour supply continues to experience shortages, construction costs continue to increase, with both wages and material costs rising rapidly. Although, the acceleration in input prices slightly fell in December and January compared to November, with the index …