Australia's construction industry continued to decline in November but at a slower pace, according to a private sector survey.
The Australian Industry Group/Housing Industry Association Performance of Construction Index (PCI) released on Wednesday rose 4.9 points to 39.6.
A reading of 50 or above indicates expansion, while levels below 50 indicate a contraction.
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The result shows that while activity continued to decline in the construction sector, the rate of contraction has slowed.
According to the PCI the new order sub-index rose 6.7 points to 38.6 while house building activity, buoyed by a cut to interest rates in November, also rose to 38.6.
Engineering construction rose to 45.6 but apartment building (23.4) and commercial construction (28.3) both declined.
Australian Industry Group Director Public Policy, Peter Burn, said the construction sector remained uneven with residential and commercial construction considerably weaker than the engineering construction sub-sector which, is benefiting from the resources boom.
"While still far from satisfactory, the sector overall appears to be pulling back from the accelerating pace of decline reached in August and September," he said.
Housing Industry Association Senior Economist, Andrew Harvey called on the federal government to do more to boost residential construction.
"There's no hiding from the fact that house building activity has contracted for 18 straight months and apartment building activity has now contracted for 19 straight months," he said.
"It is clear that the Federal Government needs to urgently turn its attention to stimulating new home building in this country," Mr Harvey said.
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