SYDNEY, March 5 (Reuters) - Activity in Australia's construction industry expanded for a second straight month in February, though a sharp pullback in apartment building slowed the overall pace of growth, a survey showed on Friday.
The survey of 200 firms by Australia Industry Group and the Housing Industry Association found only a slight easing in residential construction due to higher interest rates and the end of a government grant to first home buyers.
The survey's main measure of overall construction conditions fell 4.9 points to 52.8, but that only unwound some of January's steep 8.4 point rise and remained above the 50 threshold that separates growth from contraction.
'The survey results further reinforce the improving trend that has been evident over much of the period since the low point of February last year,' said AIG associate director of public policy Peter Burn.
'While activity contracted in the volatile apartment sector, the engineering, commercial and house building sectors all reported another month of growth,' he added.
The survey's measure of house building dipped 2.1 points to a still high 61.6, its eighth straight month of expansion. That will help cement expectations for a boom in home building this year which will offer powerful support to economic growth.
The index of apartment building slid 16.4 points to 42.7, exactly reversing its jump in January. A lack of financing after the global credit crisis has hindered this sector for months.
The index of engineering activity eased 2.1 points to 54.9, but that follows a 15.2 point gain the month before. Likewise the index for commercial building pulled back by 9.5 points to 50.4.
New orders dipped 2.2 points to 51.3, while the survey's measure of employment fell 8.0 points to 51.1
Wages growth eased slightly to a reading of 62.2, and firms reported a capacity utilisation rate of 72.4 percent.
(Reporting by Wayne Cole; Editing by ) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: AUSTRALIA ECONOMY/CONSTRUCTION (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The survey of 200 firms by Australia Industry Group and the Housing Industry Association found only a slight easing in residential construction due to higher interest rates and the end of a government grant to first home buyers.
The survey's main measure of overall construction conditions fell 4.9 points to 52.8, but that only unwound some of January's steep 8.4 point rise and remained above the 50 threshold that separates growth from contraction.
'The survey results further reinforce the improving trend that has been evident over much of the period since the low point of February last year,' said AIG associate director of public policy Peter Burn.
'While activity contracted in the volatile apartment sector, the engineering, commercial and house building sectors all reported another month of growth,' he added.
The survey's measure of house building dipped 2.1 points to a still high 61.6, its eighth straight month of expansion. That will help cement expectations for a boom in home building this year which will offer powerful support to economic growth.
The index of apartment building slid 16.4 points to 42.7, exactly reversing its jump in January. A lack of financing after the global credit crisis has hindered this sector for months.
The index of engineering activity eased 2.1 points to 54.9, but that follows a 15.2 point gain the month before. Likewise the index for commercial building pulled back by 9.5 points to 50.4.
New orders dipped 2.2 points to 51.3, while the survey's measure of employment fell 8.0 points to 51.1
Wages growth eased slightly to a reading of 62.2, and firms reported a capacity utilisation rate of 72.4 percent.
(Reporting by Wayne Cole; Editing by ) (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: AUSTRALIA ECONOMY/CONSTRUCTION (wayne.cole@reuters.com ; +61 2 9373 1813; Reuters Messaging: wayne.cole.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.