FX.co ★ Australia Q3 Construction Output Unexpectedly Falls

During the third quarter of 2025, total construction work in Australia decreased by 0.7% quarter-on-quarter, defying the anticipated 0.4% increase and reversing a slightly revised growth of 2.9% observed in the second quarter. This decline was mainly attributed to a significant reduction in engineering work, which plummeted by 5.8% following a robust rise of 5.5% in the previous quarter, largely due to diminished infrastructure-related activities. Conversely, building construction experienced a boost, increasing by 4.0% compared to 0.8% earlier. Both the non-residential (3.7% vs 0.7%) and residential sectors (4.2% vs 0.1%) recorded notable growth. Annually, construction activity expanded by 2.9%, down from the 4.5% increase observed in Q2.