Home building spurs construction growth The Economy January 8, 2014 - 9:51AM House construction remains in expansion mode. The construction sector continued to expand for the third consecutive month in December but at a slower pace, a private gauge has found. The sector, which was in contraction for three years, grew again last month as house building recorded its second-highest rate of expansion since the start of the Australian Industry Group (AiG) /Housing Industry Association Australian Performance of Construction Index (PCI) survey in 2005. The Australian dollar remained stable at about 89.20 US cents following the release of the figures. The index fell 4.4 points to 50.8 in December, as new orders, activity and suppliers' deliveries eased lower for the month. House building rose 1.5 points to 63.5. Commercial construction and apartments expanded in December, while the engineering sub-sector contracted. "The recent spurt of growth in residential construction continued in December with ongoing strength in both apartment and house-building activity," AiG's public policy director Peter Burn said. In line with the easing of the mining investment boom, engineering construction was weaker in December and with further falls in store. Mr Burn said low interest rates were supporting the construction sector and that the growth in new orders would boost confidence for builders and for the related manufacturing and service industries.