The Ai Group Industry Index for Australia’s construction sector fell sharply to -34.5 in September 2026 from a downwardly revised 4.7 in the previous month, indicating a significant deterioration in construction activity. Builders reported weak customer confidence, low enquiry levels and subdued activity, while broader economic uncertainty continued to weigh on demand. Loan and lease approvals also took longer as lenders became more cautious about credit risks and exposure. Input cost pressures were the biggest drag, with wage increases adding further strain for businesses.