Building booming

CONSTRUCTION sector activity is expanding at its fastest pace in more than two-and-ahalf years, new research suggests.

A pick-up in apartment building and sharp increase in engineering work are fuelling the rise, according to the Australian Industry Group.

The Ai Group and Housing Industry Association performance of construction index rose 4.8 points to 56.7 in May – its fourth consecutive increase. Readings above 50 point to an expansion in the sector.

Despite fears of a looming apartment glut in some cities, apartment building drove May’s lift, with the sub-index for that sector expanding 13.2 points – the steepest pace since November 2015.

But house building activity weakened, returning to negative territory for the first time in five months in a further sign that sector is cooling.