Australia Q4 Construction Output Unexpectedly Drops

Total construction work in Australia grew by 3.4% quarter-on-quarter to A$83,360.6 million in Q1 2026, surpassing market expectations of a 0.8% increase and the previous period’s revised 0.2% rise. The increase also marked the sharpest since the first quarter of 2023, largely driven by a 6.9% increase to A$38,652 million in engineering works. Additionally, building activity rose 0.6% to A$44,708.6 million, with a 6.9% gain in non-residential constructions, while residential projects declined 0.6%. Regionally, construction activity increased in Western Australia (+30.6%), Tasmania (+5.5%), and Queensland (+2.1%). In contrast, output decreased in Northern Territory (-13.3%), Australian Capital Territory (-10.3%), Victoria (-5%), South Australia (-1%), and New South Wales (-0.7%). On an annual basis, overall construction activity rose by 6.3% in Q1, marking the strongest growth since December 2023 and accelerating from a 3.2% gain in the preceding period.

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.

Total construction work in Australia dropped by 0.7% quarter-on-quarter in Q3 2025, missing market expectations for a 0.4% rise and reversing a marginally revised 2.9% growth in the previous period. The downturn was driven primarily by a sharp drop in engineering work (-5.8% vs 5.5% in Q2), reflecting weaker infrastructure-related activity. In contrast, building construction strengthened (4.0% vs 0.8%), with both non-residential building (3.7% vs 0.7%) and residential work (4.2% vs 0.1%) posting solid gains. Regionally, construction activity declined in Victoria (-2.5%), Western Australia (-1.2%), Tasmania (-3.3%), and the Northern Territory (-2.4%). In contrast, solid growth was recorded in New South Wales (5.7%), Queensland (5.9%), and South Australia (14.0%), underscoring uneven momentum across states. On an annual basis, construction activity grew 2.9%, easing from a 4.5% rise in Q2.