Home building flattens

SYDNEY: Construction activity in Australia weakened in March, with the industry contracting slightly after two months of growth, a report says.

The Australian Industry Group-Housing Industry Association performance of construction index fellby 4.1 points to a seasonally adjusted 48.7. Falls in new orders and activity tipped the index below the key 50level.

The apartment sub-sector contracted for the second month in a row in March, and engineering construction also lost ground. House building was flat after eight consecutive months of expansion.

Commercial construction was the only sector to continue to grow, expanding modestly for a third consecutive month.

The report said builders blamed higher interest rates and weaker first-home buyer demand, which dampened activity and new business during the month.

- AAP