Infrastructure projects for the resources sector are propping up the construction industry, according to the latest figures from the Australian Industry Group (Ai Group).
The Ai Group December 2011 performance index showed that construction remained in decline for the 19th consecutive month with December’s lowered interest rate—the second in two months—having little effect on trade.
December’s performance rated 41, where a score less than 50 on the index indicates contraction while a figure greater than 50 denotes growth.
Engineering construction related to the resources sector was the only highlight on the index, lifting the score by 1.4 points compared with November 2011.
Other promising leads in property make have an affect in the coming months as prospects for new home sales lift and contraction in the apartment building sector slows.
Resource projects in Queensland and Western Australia led the engineering construction expansion with a performance rise of 5.7 points to arrive at the growth figure of 51.3.