Australia’s construction sector has shifted back into expansion territory at the start of 2026, according to the AIG Construction Index. The index climbed to 5.2 in January 2026, rebounding sharply from a deeply negative reading of -16.9 recorded in November 2025.
The turnaround suggests a notable improvement in activity across the construction industry after a period of contraction late last year. While detailed drivers of the shift were not provided, the move from a strongly negative to a positive reading points to strengthening conditions in the sector.
The latest data, updated on 3 February 2026, will be closely watched by market participants and policymakers as a potential signal of stabilisation or early recovery in Australia’s broader economic momentum tied to construction-related activity.
