Fall in construction activity steepens

Australia's construction industry has contracted at a faster rate, as weakness in mining-related engineering outweighs expansion in the residential sector.

The fall in mining-related projects has caused a sharp decline in Australia's construction industry. (AAP)

Construction activity has continued to contract as the fall in mining-related projects overshadows expansion in the housing sector.

The Australian Industry Group/Housing Industry Association Performance of Construction Index fell 1.4 points to 46.4 in June, staying below the 50 level that marks contraction from expansion.

"The shrinking of the resources and energy investment pipeline is a clear constraint on the industry and the economy as a whole," Ai Group director of public policy Peter Burn said in a statement on Tuesday.