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03.03.202600:30:00UTC+00Australia’s Building Slump Eases as January Approvals Decline Moderates

Australia’s construction sector showed tentative signs of stabilisation at the start of 2026, with the pace of decline in building approvals easing in January. Month-over-month approvals fell by 7.2% in January 2026, a marked improvement on the sharp 14.9% drop recorded in December 2025.

The data, updated on 03 March 2026, indicate that while the sector remains under pressure, the contraction is no longer as severe as at the end of last year. On a month-over-month basis, December’s figure reflected a steep pullback compared to November 2025, whereas January’s softer decline suggests some cooling in the downward momentum.

Investors and policymakers are likely to watch upcoming releases closely to gauge whether January marks the beginning of a stabilisation phase or a temporary pause in what has been a volatile period for Australia’s building pipeline.

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