FX.co ★ Australia’s AIG Construction Index Swings Back to Growth in January 2026

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.