Sydney, Aug 7 (IANS): Construction activity in Australia fell in July for the 26th straight month because of ongoing poor demand for work and subdued workloads, a survey released Tuesday by the Australian Industry Group (Ai Group) showed.

The Ai Group Australian Performance of Construction Index (PCI) in conjunction with the Housing Industry Association (HIA) fell 2.2 points to 32.6 in July, reported Xinhua.

Readings below 50 indicate a contraction in the industry with the distance from 50 indicative of the strength of the decline.

All four construction sub-sectors suffered contractions, with house building recording a sharper decline in activity, the survey found.

Ai Group Director of Public Policy Peter Burn said the construction industry remained in the doldrums in July despite the interest rate cuts in May and June.

"Two bright spots in July were an easing in the rate of decline in apartment construction activity and a pick-up in the engineering construction new orders sub-index," he said in a statement Tuesday.

"However, with new orders and employment levels across the industry continuing to fall, the new financial year has brought little to cheer about," he added.