[SYDNEY] A survey on Australian construction activity released yesterday showed the sector expanding for the first time this year in June, led by strength in home building and a rebound in engineering work.

The overall index of construction activity climbed 5.1 points to 51.8 in June, the highest in seven months and above the 50 threshold that is supposed to separate growth from contraction, the report by the Australia Industry Group and Australian Housing Association showed.

The survey's measure of house building added 2.2 points to reach 56.6, offsetting a 16.7 point drop in the volatile apartment sector to 49.2. New orders in home building also surged 5.6 points to 60.1, suggesting the improvement in activity has some way to run yet. New orders for all sectors climbed 6.7 points to 52.6.