Sydney, Aug 28 (IANS): Construction activity in Australia remains weak as businesses might be cautious about capital expenditure by delaying projects, economists said Wednesday.

Building activity data released by the Australian Bureau of Statistics (ABS) showed the value of construction work done in the country fell 0.3 percent in the June quarter, compared to the March quarter, Xinhua reported.

The result was weaker than economists' expectation of a 1.0 percent rise. Engineering work done, which includes mines, roads and bridges, was down 0.2 percent in the quarter, according to the ABS.

Economist Ben Jarman from global investment bank JP Morgan said the figures showed the Australian construction sector was still struggling.

"The big story for the outlook is what is going to happen with the engineering pipeline," he told the Australian Associated Press.

"Firms might be a bit cautious about capital expenditure and they may be putting projects on hold," he added.