Construction activity fell in January for a 20th consecutive month, according to the latest figures from the Australian Industry Group-Housing Industry Association performance of construction index.
The index fell 1.2 points to 39.8, well below the 50-point level separating expansion from contraction."The interest rate reductions towards the end of last year appear to have helped reverse the accelerating falls in new orders for residential construction," AIG director of public policy director of public policy Peter Burn said in a statement.
"The new orders sub-index for house building is rising again in January, following solid improvements since last September... Engineering construction remains distinctly stronger than the rest of the sector due in large part to resource-related projects."
HIA economist Harley Dale has pressured the Reserve Bank to make cuts to the official interest rate this afternoon.
Shares open flat after weak overseas leads
The Australian sharemarket has opened flat this morning following a disappointing night in offshore markets, where investors remain concerned over negotiations in Greece to complete a debt deal.
The benchmark S&P/ASX200 index was up 10.8 points or 0.2% to 4306.8 at 11.50 AEST, while the Australian dollar was trading at $US1.07c.
AMP shares rose 0.47% to $4.29, while Commonwealth Bank shares rose 0.39% to $51.04. Westpac shares gained 0.38% to $21.11 as ANZ lifted 1.03% to $21.55.
In the United States, the Dow Jones Industrial Average fell 17 points or 0.1% to 12,845.13.
NAB shares drop on Q1 profit result, business revenue flat
Shares in National Australia Bank have fallen in early trade, after the bank posted $1.6 billion unaudited net profit for the first quarter.
The bank says growth in revenue was driven by wholesale banking and its wealth management arms, with revenue in business and personal banking relatively flat amid higher funding costs and weak volume growth.
Chief executive officer Cameron Clyne described the result as a "solid performance" in a challenging environment.
He also flagged a strategic review of its UK division, given expectations the economy will experience further troubles.
Shares were down 2.5% to $23.57 at 1140 AEDT.
Macquarie slashes annual profit guidance
Meanwhile investment bank Macquarie has slashed its full-year outlook, tipping a 25% decline on the previous year.
The bank said global economic uncertainty had deepened since late 2011, leading to much lower levels of client activity.
The downgrade means the former millionaires' factory will post an annual profit below $1 billion.
Before midday, its shares were trading 0.4% weaker at $25.99.
Shorten attacks banks on job cuts
Financial services minister Bill Shorten has attacked the major banks over job cuts, saying they are focusing on profits rather than helping taxpayers.
"Now the banks have done well and they're making great profits, there's an old saying: Don't forget the one who brought you to the dance," he told ABC Radio this morning.
"The banks' success is not done on some island separate to the continent of Australia, it's through the support of the taxpayers.... Let us not have corporate amnesia."
Shorten said the major banks need to have a change of attitude.
"They need to have a view that we're not just a retail network of banks, that we need to deepen our back-office functions, that we need to deepen our skill sets," he said.
"The easiest thing sometimes to do is just move people off your books, whereas I think sometimes if you take a longer investment attitude in people, you tend to get better productivity, better loyalty."
