Construction contracted for a second month in November as activity fell in all four sectors, the Performance of Construction Index shows.
House building and apartment construction both slowed again after October's sharp declines, as did commercial construction and engineering work, according to the latest monthly report by Ai Group and the Housing Industry Association.
The report follows official figures last month showing new housing approvals fell to a two-year low in October as apartments slumped.
The picture was mixed, however. While the readings stayed below the 50 level that indicates contraction, the pace of decline slowed in November from the previous month.
The sub-index of new orders in house-building, a leading indicator of activity, rose above 50 to 52.0, indicating a return to growth from October's contraction.
"Residential builders reported an easing in customer enquiries and lower sales in November," the report said. "However, activity continued to receive solid support from on-going projects while investor activity was seen as remaining relatively firm in the month."
There were some reports of an increase in project commencements in commercial construction but conditions remained patchy across different states and categories, it said.
"Engineering construction businesses reported a further winding back in mining-related investment which outweighed strengthening demand from new infrastructure work," the report said.
