2026.02.2500:47:22UTC+00Australia Q4 Construction Output Unexpectedly Drops

Total construction work in Australia edged down 0.1% quarter-on-quarter to A$80,011.8 million in Q4 2025, undershooting market forecasts for a 0.9% increase and marking a second consecutive quarterly decline after a 0.7% fall in Q3. The overall weakness was driven primarily by a sharp contraction in engineering construction, which dropped 1.3% to A$35,908.4 million amid softer infrastructure-related activity.

In contrast, building activity strengthened. Total building work rose 0.9%, supported by a 1.0% increase in residential construction and a 0.7% gain in non-residential projects.

At the state and territory level, construction activity declined in the Australian Capital Territory (-16.3%), the Northern Territory (-11.4%), Western Australia (-1.7%), and Queensland (-1.1%). Output increased in South Australia (2.3%), New South Wales (1.5%), Victoria (0.9%), and Tasmania (0.3%).

On an annual basis, total construction activity grew 3.0% in Q4, slightly faster than the 2.9% year-on-year increase recorded in Q3.