Australia Construction Index Surges But Stays in Contraction

The Ai Group Industry Index for Australia’s construction sector jumped 37.8 points to -19.3 in April 2026, indicating a sharp improvement in conditions, though the sector remained in contraction. Firms continued to report steady underlying demand, but activity was constrained by rising input and labour costs. Builders also noted a limited appetite for risk, which weighed on new project commitments. At the same time, labour shortages persisted, as skilled trades were increasingly sought after across multiple sectors, adding further pressure on project timelines and costs.