Australia Q4 Construction Output Unexpectedly Drops

2026-02-25 00:47 By Jam Kaimo Samonte 1 min. read

Total construction work in Australia fell 0.1% quarter-on-quarter to A$80,011.8 million in Q4 2025, missing market expectations for a 0.9% increase and marking a second straight quarterly decline after a 0.7% drop in Q3.

The contraction was largely driven by a sharp pullback in engineering work, which slid 1.3% to A$35,908.4 million amid softer infrastructure-related activity.

By contrast, building activity expanded, with total building work up 0.9%, including a 1% rise in residential construction and a 0.7% gain in non-residential projects.

Regionally, construction activity declined in the Australian Capital Territory (-16.3%), Northern Territory (-11.4%), Western Australia (-1.7%), and Queensland (-1.1%).

Meanwhile, output increased in South Australia (2.3%), New South Wales (1.5%), Victoria (0.9%), and Tasmania (0.3%).

On an annual basis, overall construction activity rose 3% in Q4, accelerating slightly from a 2.9% increase in Q3.



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Australia Q4 Construction Output Unexpectedly Drops
Total construction work in Australia fell 0.1% quarter-on-quarter to A$80,011.8 million in Q4 2025, missing market expectations for a 0.9% increase and marking a second straight quarterly decline after a 0.7% drop in Q3. The contraction was largely driven by a sharp pullback in engineering work, which slid 1.3% to A$35,908.4 million amid softer infrastructure-related activity. By contrast, building activity expanded, with total building work up 0.9%, including a 1% rise in residential construction and a 0.7% gain in non-residential projects. Regionally, construction activity declined in the Australian Capital Territory (-16.3%), Northern Territory (-11.4%), Western Australia (-1.7%), and Queensland (-1.1%). Meanwhile, output increased in South Australia (2.3%), New South Wales (1.5%), Victoria (0.9%), and Tasmania (0.3%). On an annual basis, overall construction activity rose 3% in Q4, accelerating slightly from a 2.9% increase in Q3.
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