The Ai Group Industry Index for Australia’s construction sector lost momentum in March with the PCI indicator dropping sharply to -31.4 its lowest level since October 2024 and reversing all improvements from the past year. Constructors again provided mixed feedback as some noted that a decline in orders and tendering is weighing on operations while others reported that rising fuel costs and approval delays have intensified competition and squeezed margins. Firms continued to cite weak capital spending due to increased uncertainty from the Middle East conflict alongside anticipated cost pressures as fuel and material prices begin to rise and persistent challenges with skills shortages that suppressed workforce participation in regional areas. Cash flow pressures intensified as higher input costs and slower payments combined to erode working capital despite some businesses build inventories or seeking alternative suppliers to mitigate supply chain disruptions. source: Australian Industry Group
Industry Index Construction in Australia decreased to -8.20 points in February from 4.60 points in January of 2026. Industry Index Construction in Australia averaged -8.65 points from 2020 until 2026, reaching an all time high of 23.90 points in March of 2021 and a record low of -68.10 points in May of 2024. This page includes a chart with historical data for Australia Ai Group Industry Index - Construction. Australia Ai Group Industry Index - Construction - values, historical data and charts - was last updated on April of 2026.
Industry Index Construction in Australia decreased to -8.20 points in February from 4.60 points in January of 2026. Industry Index Construction in Australia is expected to be 3.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Ai Group Industry Index - Construction is projected to trend around 1.00 points in 2027, according to our econometric models.