FX.co ★ Australia Q2 Construction Activity Rebounds Sharply

In the second quarter of 2025, Australia's total construction activity surged by 3.0% compared to the previous quarter. This robust recovery follows a downwardly revised decline of 0.3% in the first quarter and significantly surpasses the market's anticipated growth of 0.7%. The upturn was primarily fueled by a significant rebound in engineering work, which surged by 6.1% following a 1.5% dip in the prior quarter, along with a slight recovery in non-residential building, which rose by 0.3% after a previous decrease of 0.3%. Conversely, the growth pace in building construction decelerated to 0.2%, down from 0.8%, while residential activity saw minimal growth at 0.1%, compared to 1.4% previously. Regionally, notable growth was observed in South Australia (1.6%), Tasmania (2.4%), the Northern Territory (a remarkable 344.8%), and the Australian Capital Territory (17.5%). In contrast, declines were registered in New South Wales (-1.7%), Victoria (-1.5%), Queensland (-1.6%), and Western Australia (-1.5%). On a year-over-year basis, overall construction activity increased by 4.8%, improving from a 3.0% rise in the first quarter.