Engineering drags down construction

Construction sector activity has fallen into the red in December after enjoying four months of expansion.

Construction activity has fallen, after enjoying four months of expansion, due to weakness in mining-related engineering construction, as well as commercial construction.

The Australian Industry Group/Housing Industry Association performance of construction index fell by 3.9 points to 46.8 points in December, moving below the the 50 level which separates expansion from contraction.

Ai Group chief economist Julie Troth said strong residential construction sectors is being overshadowed by a fall in engineering construction activity.

"A much-needed lift in commercial construction approvals and new orders is yet to materialise to take its place," he said.


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Source: AAP



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