Total construction work in Australia rose by 3.4% quarter-on-quarter to A$83,360.6 million in Q1 2026, well above market expectations of a 0.8% increase and the previous quarter’s revised 0.2% gain. This was the fastest pace of growth since the first quarter of 2023, largely driven by a 6.9% jump in engineering construction to A$38,652 million.
Building activity also increased, up 0.6% to A$44,708.6 million. Within this category, non-residential construction surged 6.9%, while residential building slipped 0.6%.
By region, total construction activity expanded in Western Australia (+30.6%), Tasmania (+5.5%), and Queensland (+2.1%). In contrast, output fell in the Northern Territory (-13.3%), the Australian Capital Territory (-10.3%), Victoria (-5%), South Australia (-1%), and New South Wales (-0.7%).
On an annual basis, overall construction activity increased 6.3% in Q1, the strongest growth since December 2023 and an acceleration from the 3.2% rise recorded in the previous period.
