Australian construction activity stayed in the doldrums in July, largely due to weak levels of new work and poor consumer confidence, a report says.

It was the construction industry’s 14th consecutive monthly fall.

The Australian Industry Group-Housing Industry Association’s performance of construction index (PCI) rose 0.3 index point to 36.1 points in July.

A reading below 50 indicates a contraction in activity.

All four construction industry sub-sectors experienced falls in activity, with house building posting the largest fall, down 5.6 points to 28.5.

Australian Industry Group director of public policy Peter Burn said the data showed the construction sector’s poor run continuing.

“Consumer caution and the fear of further interest rate rises are dampening activity in residential construction,” Dr Burn said in a statement.

“The commercial construction sub-sector is suffering as low levels of private sector activity are not making up for the withdrawal of government-backed projects.”

Dr Burn said the decline in new orders meant there wouldn’t be a recovery soon.

Housing Industry Association economist, Matthew King, said the data shows the bleak state of business and consumer confidence in Australia.

“Households and industry are facing destabilising factors in the form of economic and financial market uncertainty in the US and Europe,” Mr King said.

“Slow progress in reducing structural supply side obstacles is quashing any chance of affordability moving to greener pastures.”