Total construction work in Australia grew by 3.4% quarter-on-quarter to A$83,360.6 million in Q1 2026, surpassing market expectations of a 0.8% increase and the previous period’s revised 0.2% rise. The increase also marked the sharpest since the first quarter of 2023, largely driven by a 6.9% increase to A$38,652 million in engineering works. Additionally, building activity rose 0.6% to A$44,708.6 million, with a 6.9% gain in non-residential constructions, while residential projects declined 0.6%. Regionally, construction activity increased in Western Australia (+30.6%), Tasmania (+5.5%), and Queensland (+2.1%). In contrast, output decreased in Northern Territory (-13.3%), Australian Capital Territory (-10.3%), Victoria (-5%), South Australia (-1%), and New South Wales (-0.7%). On an annual basis, overall construction activity rose by 6.3% in Q1, marking the strongest growth since December 2023 and accelerating from a 3.2% gain in the preceding period.