The Ai Group Industry Index for Australia’s construction sector fell sharply to -34.5 in September 2026 from a downwardly revised 4.7 in the previous month, indicating a significant deterioration in construction activity. Builders reported weak customer confidence, low enquiry levels and subdued activity, while broader economic uncertainty continued to weigh on demand. Loan and lease approvals also took longer as lenders became more cautious about credit risks and exposure. Input cost pressures were the biggest drag, with wage increases adding further strain for businesses. source: Australian Industry Group

Industry Index Construction in Australia decreased to -34.50 points in September from -4.70 points in August of 2026. Industry Index Construction in Australia averaged -9.77 points from 2020 until 2026, reaching an all time high of 22.70 points in May of 2021 and a record low of -63.60 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 October of 2026.

Industry Index Construction in Australia decreased to -34.50 points in September from -4.70 points in August of 2026. Industry Index Construction in Australia is expected to be -10.00 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 -10.00 points in 2027 and -12.00 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-09-01 11:00 PM
Ai Group Construction Index
Aug -6.9 -43.8 -42
2026-10-06 10:00 PM
Ai Group Construction Index
Sep -34.5 -4.7 -7
2026-11-03 10:00 PM
Ai Group Construction Index
Oct -34.5


Related Last Previous Unit Reference
Bankruptcies 1808.00 1213.00 Companies Aug 2026
Building Capital Expenditure 2.10 -3.30 percent Jun 2026
NAB Business Confidence -8.00 -6.00 points Aug 2026
Business Inventories -0.20 0.70 percent Jun 2026
Capacity Utilization 77.20 79.40 percent Sep 2026
Passenger Car Sales 13796.00 13592.00 Units Sep 2026
Changes in Inventories 71.00 749.00 AUD Million Jun 2026
Composite Leading Indicator 99.95 99.99 points Sep 2026
Company Gross Profits 134696.00 132311.00 AUD Million Jun 2026
Corruption Index 76.00 77.00 Points Dec 2025
Corruption Rank 12.00 10.00 Dec 2025
Industrial Production 0.50 2.50 percent Jun 2026
Industrial Production Mom 0.20 -0.90 percent Jun 2026
Ai Group Industry Index -24.20 -1.60 points Sep 2026
Ai Group Services Index -31.10 -0.20 points Sep 2026
Ai Group Construction Index -34.50 -4.70 points Sep 2026
Ai Group Manufacturing Index -8.70 -14.90 points Sep 2026
Westpac Leading Index MoM 0.00 0.00 percent Aug 2026
Manufacturing Production 1.10 3.20 percent Jun 2026
Mining Production 0.30 3.10 percent Jun 2026
New Orders 20.00 7.00 points Sep 2026
Plant Machinery Capital Expenditure -8.90 18.40 percent Jun 2026
Private Capital Expenditure -3.60 6.90 percent Jun 2026
New Vehicle Sales 102924.00 100939.00 Units Sep 2026


Australia Ai Group Industry Index - Construction
The Australian Industry Index is a monthly index that measures changes in activity in Australia’s industrial sectors. It provides diffusion indices which measure rates of changes in the level of industrial activity – expansion, stability or contraction. A positive reading indicates the activity is expanding; negative indicates contraction. The distance from 0 indicates the strength of the expansion or decline.
Actual Previous Highest Lowest Dates Unit Frequency
-34.50 -4.70 22.70 -63.60 2020 - 2026 points Monthly
SA

News Stream
Australia Construction Output Tumbles
The Ai Group Industry Index for Australia’s construction sector fell sharply to -34.5 in September 2026 from a downwardly revised 4.7 in the previous month, indicating a significant deterioration in construction activity. Builders reported weak customer confidence, low enquiry levels and subdued activity, while broader economic uncertainty continued to weigh on demand. Loan and lease approvals also took longer as lenders became more cautious about credit risks and exposure. Input cost pressures were the biggest drag, with wage increases adding further strain for businesses.
2026-10-06
Australia Construction Bounces Back
The Ai Group Industry Index for Australia’s construction sector jumped to -6.9 in August 2026 from a revised -43.5 in the previous month, marking its highest reading since January and signalling a sharp improvement in conditions. However, businesses continued to report uncertainty stemming from taxation changes and the Federal Budget, as well as volatility in energy markets, with some respondents finding it difficult to forecast demand. Cost pressures also remained elevated, with businesses citing higher supplier prices, fuel levies, and raw material and energy costs. Labour shortages continued to constrain activity, particularly due to a lack of skilled trades, difficulties sourcing and retaining staff, and increased competition for workers amid a low-unemployment environment.
2026-09-01
Australia Construction Extends Six-Month Contraction
The Ai Group Industry Index for Australia's construction sector fell to -40.6 in July 2026 from a downwardly revised -33.3 in the previous month, marking its weakest reading since March and the sixth consecutive month of contraction, highlighting a further deterioration in business conditions. Activity remained constrained by delays in project approvals, persistent cost pressures, cautious client spending, a limited pipeline of tender opportunities, and contracts nearing completion. Businesses also cited policy and regulatory uncertainty, which compounded higher fuel-related costs. Meanwhile, ongoing labour shortages continued to limit capacity, while rising wage costs added further pressure on the sector's operating conditions.
2026-08-04