Australia’s Ai Group Industry Index for manufacturing rose 5.1 points to -22.4 in May 2026, a three-month high that signaled modest improvement but left the sector deep in contraction. Firms continued to grapple with rising logistics costs, supply chain disruptions, elevated input prices, and uncertainty over future supplies, while weak demand and higher operating expenses weighed on sales and profitability. Upstream, chemical producers faced scaled-back re-orders, overseas competition, and mounting fuel, labor, and rent costs. Metals producers benefited from steady repeat business tied to rolling stock and refurbishment projects but reported a lack of new orders. Downstream, machinery and equipment makers cited subdued capital goods demand, supply constraints, and higher borrowing costs. Food and beverage producers found some support from product diversification, though growth was capped by rising fuel costs, raw material shortages, and softer economic conditions. source: Australian Industry Group

Industry Index Manufacturing in Australia increased to -22.40 points in May from -27.90 points in April of 2026. Industry Index Manufacturing in Australia averaged -8.95 points from 2020 until 2026, reaching an all time high of 21.50 points in March of 2021 and a record low of -34.10 points in April of 2020. This page includes a chart with historical data for Australia Ai Group Industry Index - Manufacturing. Australia Ai Group Industry Index - Manufacturing - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

Industry Index Manufacturing in Australia increased to -22.40 points in May from -27.90 points in April of 2026. Industry Index Manufacturing in Australia is expected to be -22.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia Ai Group Industry Index - Manufacturing is projected to trend around -12.00 points in 2027 and -8.00 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-05 11:00 PM
Ai Group Manufacturing Index
Apr -27.9 -28.6 -30
2026-06-02 11:00 PM
Ai Group Manufacturing Index
May -22.4 -27.5 -24
2026-06-30 11:00 PM
Ai Group Manufacturing Index
Jun -22.4 -22


Related Last Previous Unit Reference
Ai Group Industry Index -26.50 -25.50 points May 2026
Ai Group Services Index -19.60 -24.40 points May 2026
Ai Group Construction Index -9.90 -19.30 points May 2026
Ai Group Manufacturing Index -22.40 -27.90 points May 2026


Australia Ai Group Industry Index - Manufacturing
The Australian Industry Index is a monthly index that measures changes in activity in Australia’s industrial sectors. It provides diffusion indices which measure rates of changes in the level of industrial activity – expansion, stability or contraction. A positive reading indicates the activity is expanding; negative indicates contraction. The distance from 0 indicates the strength of the expansion or decline.
Actual Previous Highest Lowest Dates Unit Frequency
-22.40 -27.90 21.50 -34.10 2020 - 2026 points Monthly
SA

News Stream
Australia Manufacturing Stays Fragile Despite Improvement
Australia’s Ai Group Industry Index for manufacturing rose 5.1 points to -22.4 in May 2026, a three-month high that signaled modest improvement but left the sector deep in contraction. Firms continued to grapple with rising logistics costs, supply chain disruptions, elevated input prices, and uncertainty over future supplies, while weak demand and higher operating expenses weighed on sales and profitability. Upstream, chemical producers faced scaled-back re-orders, overseas competition, and mounting fuel, labor, and rent costs. Metals producers benefited from steady repeat business tied to rolling stock and refurbishment projects but reported a lack of new orders. Downstream, machinery and equipment makers cited subdued capital goods demand, supply constraints, and higher borrowing costs. Food and beverage producers found some support from product diversification, though growth was capped by rising fuel costs, raw material shortages, and softer economic conditions.
2026-06-02
Australia Manufacturing Stays in Contraction
Australia’s Ai Group Industry Index for manufacturing edged up 0.7 points to -27.9 in April 2026, still deep in contraction as cost and demand pressures persisted. Fixed-price contracts limited firms’ ability to pass on rising input costs, while export disruptions, cautious ordering, and shipment delays drove production cutbacks. Upstream, chemicals saw a moderated decline as demand was brought forward, but other segments struggled with weak confidence, supply disruptions, and rising energy costs. Minerals and metals fell to a record low, hit by softer exports, delayed orders, raw material shortages, and skilled labour constraints. Downstream conditions were uneven: some machinery and equipment makers reported steady demand, but others flagged rising raw material and fuel costs alongside customer uncertainty. Food and beverage producers faced higher input, packaging, and transport costs, with limited pricing power squeezing margins further.
2026-05-05
Australia Manufacturing Deteriorates the Most Since April 2020: Ai Group
The Ai Group Industry Index for Australia’s manufacturing sector fell to -27.9 in March marking its sharpest monthly drop since April 2020. Manufacturing trends remained weak as customer confidence and intensifying costs from fuel and freight weighed on output while inventory building offered only partial relief. The chemicals index increased to -18.1 as large projects boosted volumes despite rising energy costs and supply disruptions. In contrast minerals and metals fell to -30.2 hindered by reduced export demand and shipping delays though some firms brought orders forward. The machinery and equipment index increased to -26.2 amid improved orders for some despite stronger import competition and material sourcing difficulties. Food beverages and TCF fell significantly to -33.2 with higher interest rates and fuel costs weighing on customer demand and operating costs alongside competition from overseas suppliers. Capacity utilization also declined to 73.7% amid these pressures.
2026-03-31