FX.co ★ Australia’s AIG Construction Index Plunges in March, Signalling Deepening Sector Contraction

Australia’s construction sector showed a sharp deterioration in March 2026, as the AIG Construction Index slumped to -31.4, down from -8.2 in February 2026. The latest reading, updated on 31 March 2026, points to a significantly faster pace of contraction in the industry over the month.

The steep decline from February’s level underscores mounting pressure across the construction sector, with activity weakening further as March progressed. While the February figure of -8.2 already indicated a subdued environment, March’s -31.4 suggests that the downturn has intensified, highlighting growing challenges for builders, contractors and related suppliers.

The latest data from the AIG Construction Index will likely heighten concerns about the near-term outlook for Australia’s building activity, with the pace of decline in March hinting at rising headwinds for both residential and commercial projects as the second quarter of 2026 begins.