According to a survey by Australian Industry Group and Housing Industry Association, activity in Australian construction sector expanded in the month of April. This was reported the second consecutive monthly expansion in Australian building industry.

AIG said that the expansion of the construction sector reflects a strong recovery in global economy. The survey also revealed that all the major sub-sectors expanded in the month of April.

The Australian Industry Group-Housing Industry Association performance of construction index (PCI) was reported at a seasonally adjusted 55.8 points in the month of April, increasing by 4.8 points.

A reading above 50 shows the industry is growing. All the major sectors in the index were reported up in the month of April. AIG said that the growth in all major sub-sectors was mainly attributable to the increasing numbers of tenders and support for school building work following the federal government's stimulus programs.

"The increase in construction activity across all of the sub-sectors is an encouraging sign that the broader economic recovery is gaining strength," said Peter Burn, director of public policy at the Australian Industry Group.

The index of house building sub-sector was reported at 59.2 in April, increasing by 6 points. The engineering sub-sector was reported 54.4, increasing by 4 points in the month of April. The apartment building sub-index jumped
10.3 points to the level of 58.8 in April.