Australia: Construction sector coming under increasing pressure as Middle East conflict continues
Global construction activity remains steady at +8 in Q1 2026, but material costs are rising significantly due to ongoing Middle East conflict, according to RICS Global Construction Monitor.
Construction Sentiment Index moved from +7 to +8 in Q1 2026
How is the Middle East conflict affecting Australian construction material costs?
Builders, plumbers, electricians and other trades will face higher material costs, squeezing profit margins and potentially forcing price increases for clients.
Key takeaways
- Construction activity remains relatively steady with sentiment index at +8 in Q1 2026
- Material cost pressures are rising markedly across the construction sector
- Middle East conflict continues to put pressure on Australian construction industry
- RICS Global Construction Monitor tracks quarterly construction sector performance
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