Construction activity has increased after stagnating or contracting in each of the preceding nine months.
The Australian Industry Group/Housing Industry Association performance of construction index rose by 6.7 points to 53.8 points in August, above the 50 level which separates expansion from contraction.
Ai Group head of public policy Peter Burn put the rise down to ongoing strength in residential building and a pickup in commercial construction.
"The positive news from these sub-sectors was sufficiently strong to outweigh the entrenched contraction in engineering construction associated with the winding down in mining-related projects," he said.
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