Despite signs of an improving market in home building, levels of confidence within the construction sector in Australia have dropped back amid declining expectations for activity and employment and a shrinking backlog of work on the books.

In the latest National Survey of Building and Construction, which covers more than 450 builders across the residential, commercial and civil sectors published by Master Builders Australia, a slight majority of builders indicated a deterioration in current business conditions and indicated their expectations about the near-term future remained slightly negative….