Australia Building Capex Rebounds in Q2

Private new capital expenditure on buildings and structures in Australia grew 2.1% quarter-on-quarter in Q2 2026, recovering from a downwardly revised 3.3% rise in Q1. Continued activity in data centre construction to expand capacity, along with the start of new renewable energy projects, drove the expansion. By industry, spending on buildings and structures posted growth in information media and telecommunications (17.7%), professional, scientific and technical services (17.2%), electricity, gas, water and waste services (7.8%), health care and social assistance (4.4%), rental, hiring and real estate services (2.3%), and manufacturing (1.5%). “ There was additional strength in buildings and structures capex driven by the commencement of several large wind, solar, and battery energy storage system projects.” Tom Lay, ABS head of business statistics, said. On an annual basis, private new capital expenditure on buildings and structures expanded 3.8%.

Private new capital expenditure on buildings and structures in Australia fell 3.8% qoq in Q1 2026, reversing an upwardly revised 2.5% rise in Q4, which was the strongest growth since Q2 2023. It was the 1st contraction since Q2 2024, with falls in non-mining (-4.3%) and mining (-2.9%) industries. By industry, spending on buildings and structures posted the largest falls in construction (-35.8%), manufacturing (-25.1%), professional, scientific and technical services (-19.5%), rental, hiring and real estate services (-11.6%), and electricity, gas, water and waste services (-8.5%). " The fall in buildings and structures was driven by large projects reaching completion, particularly across manufacturing, electricity, gas, water and waste services, and mining. Despite the overall fall, investment in data centre building construction continues to grow with information media and telecommunications rising for the 7th straight quarter, up 12.6%.’ Tom Lay, ABS head of business statistics, said.

Private new capital expenditure on buildings and structures in Australia increased 2.3% quarter-on-quarter in the three months to December 2025, quickening from a 2.1% rise in Q3 and marking the strongest expansion since Q2 2023. By industry, spending on buildings and structures posted the largest gains in arts and recreation services (30.3%), administrative and support services (25%), construction (15.8%), professional, scientific and technical services (14.4%) and electricity, gas, water and waste services (8.5%). Tom Lay, head of business statistics at the Australian Bureau of Statistics, said the increase in overall investment was driven by strength in buildings and structures, particularly renewable energy projects. He added that this was partly offset by a decline in equipment and machinery spending, following record-high investment in data centers during the previous quarter.