Australian Construction Sector Contracts For Fourth Month

Australia's construction sector contracted for the fourth straight month in April despite an improvement in residential building, a survey by Australian Industry Group and Housing Industry Association showed Wednesday.

The Performance of Construction Index fell to 45.9 in April from 46.2 in March. Any reading below 50 indicates contraction in the sector.

In April, commercial construction dropped sharply to 45.7 from 56.5 in March. Engineering construction also declined in April, to 39.2 from 45.5.

Meanwhile, house building rose 3.8 points to 54.6, and apartment building was 12.3 points stronger to reach 57.9, data showed.

"The deepening slide in engineering construction is overshadowing the growth in residential building activity and the tentative recovery of commercial construction as seen in the expansion in April of new commercial construction orders," Australian Industry Group Director - Public Policy, Peter Burn, said.

The new orders sub index, which measures the future activity declined to 46.6 from 48.3. Input prices were lower in April, but the corresponding index remained high at 68.4.

by RTT Staff Writer

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Australian Construction Sector Contracts For Fourth Month