The Performance of Construction Index jumped 6.7 points to 53.8 last month, its highest reading in almost a year, as continued strong residential work was bolstered by positive signs in the other sectors.
"Continued strength in the residential sub-sectors and a lift in conditions in commercial construction underwrote the welcome return to expansion in the national construction sector during August," Ai Group Head of Policy, Peter Burn said.
New orders in all sectors grew, led by apartments, the sub-index for which jumped 10.8 points to 60.9.
"This suggests that the existing pipeline of apartments to be built remains at an elevated level and is expected to support further apartment building activity in 2015-16," the report said.
New orders in the house-building sector returned to growth in August after contracting in July, as the sub-index rose 9.4 points to 56.5, the highest rate of growth since October 2014.
Encouragingly, commercial construction also showed an expansion in new orders. That sector's new orders sub-index rose 6.2 points to 53.7 points, the highest level since October 2014, when it was 55.1.
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