Australia's construction industry has grown for the first time this year, as house building picks up the slack from dwindling mining construction.
Housing construction and a pick up in engineering construction driven by local council and infrastructure projects helped the industry grow for the first time in six months, the Australian Industry Group said on Monday.
The Ai Group/Housing Industry Association Performance of Construction Index rose 5.1 points to 51.8 in June, above the 50 level separating expansion from contraction.
House and apartment building were taking the baton from mining as the mining investment boom winds down, Ai Group director of public policy Peter Burn said.
"The stars aligned for engineering construction with an unexpected lift in activity on the back of local government and infrastructure projects," Dr Burn said.
"However, new orders in the engineering construction sub-sector continued to fall and, with the mining construction boom now winding down, the outlook for this sub-sector is for ongoing weakness.
"In contrast, and suggesting further rebalancing within the construction sector, new orders grew at a faster pace for both housing and apartment building."
The expansion of new orders for house and apartment building was a good sign for continued strength in coming months.
However that was offset by a continued decline in construction employment, suggesting businesses remained cautious.
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