Construction contracts for fourth month

The construction industry contracted again in July despite residential building strength, as the mining investment retreat takes its toll on the economy.

Construction activity has contracted at a slower rate, with shrinking engineering activity offsetting a boost from residential building.

The Australian Industry Group/Housing Industry Association Performance of Construction Index rose just 0.7 points to 47.1 in July, staying below the 50 level that marks contraction from expansion.

"The two-speed pattern of expansion in the apartment and house building sectors and contraction in the engineering and commercial construction sectors is well-entrenched," Ai Group head of policy Peter Burn said in a statement on Friday.

"(This) reflects the partial re-balancing of the national economy as investment in mining-related construction retreats."


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Source: AAP


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