Australia Construction Bounces Back

2026-09-01 23:09 By Farida Husna 1 min. read

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.



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