The national construction industry continued to decline in April, however, the rate of contraction eased for a second consecutive month.

The Australian Industry Group (Ai Group) - Housing Industry Association Australian Performance of Construction Index stood at 36.5 in April, up by 6.2 points, but remained below the 50-point level that separates expansion from contraction.

According to Ai Group associate director, economics and research, Tony Pensabene, the easing in the pace of contraction is mainly due to slower rates of decline in the engineering and commercial sectors. Both sectors registered their least marked falls since November 2008.

Lower interest rates and the First Home Owner Grant has also contributed to the ease in contraction, Pensabene said.