Australia's construction industry remains fragile in July except for growth in engineering and commercial construction, according to a report released by the Australian Industry Group on Tuesday.

The Housing Industry Association Performance of Construction Index (Australian PCI) fell average 2.5 points to 48.8, underpinned by weakening activity in the house building sector and following moderate growth in the previous month.

An Australian PCI reading above 50 points indicates construction activity is generally expanding; below 50, that it is declining. The distance from 50 is indicative of the strength of the expansion or decline.

The house building activity fell at a higher rate, dropping 5.0 points to 43.5; the apartment building sector rose 6.1 points to 48.4; engineering construction posted strongest growth of 19.5 points to 57.3; commercial construction declined 3.8 points to 51.1.

Australia