Australia's construction industry is in decline as new mining projects dry up.
Weakness in engineering construction is dragging on the sector, despite growth in residential house and apartment building, new figures show.
The Australian Industry Group/Housing Industry Association performance of construction index fell 0.3 points to 45.9 in April, below the 50 level that separates expansion from contraction.
It is the fourth consecutive month of contraction.
The completion of resources projects and a winding down in mining-related construction activity were major factors inhibiting engineering construction businesses, the report said.
That was overshadowing growth in residential building activity, and a tentative recovery of commercial construction, Ai Group public policy director Peter Burn said.
"While there are some promising new engineering construction projects in the resources sector ... the pipeline of large resources and energy projects is clearly drying up," Dr Burn said.
"Against this background, the Commonwealth budget provides a timely opportunity to boost non-mining infrastructure investment and address business concerns about an excessive withdrawal of public sector demand."
The report said house builders were positive in April, reporting a rise in customer enquiries and an improvement in buyer confidence, particularly among investors.
But respondents in other sectors reported tough conditions, such as a lack of public sector tenders, intense competition for work and limited investment activity by clients.
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