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Total construction work in Australia rose 3.0% quarter-on-quarter in Q2 2025, strongly recovering from a downwardly revised 0.3% decline in Q1 and easily exceeding market expectations of 0.7% growth. The increase was driven by a strong recovery in engineering work (6.1% vs -1.5% in Q1) and a modest rebound in non-residential building (0.3% vs -0.3%). In contrast, growth slowed in building construction (0.2% vs 0.8%) and residential activity (0.1% vs 1.4%). Regionally, gains were recorded in South Australia (1.6%), Tasmania (2.4%), the Northern Territory (344.8%), and the Australian Capital Territory (17.5%), while declines were seen in New South Wales (-1.7%), Victoria (-1.5%), Queensland (-1.6%), and Western Australia (-1.5%). On an annual basis, total construction activity expanded 4.8%, picking up from 3.0% in Q1.