Australia’s Ai Group Industry Index for manufacturing remained in contraction in September, albeit at a softer pace, rising to -8.7 from August’s revised -14.9, marking the highest level since May 2023. The sector remained under pressure as lower domestic demand, rising input costs, and wage pressures affected both customers and businesses, contributing to delayed investment decisions and softer orders. Upstream industries continued to contract, with companies reporting rising costs for materials, freight, utilities, and fuel, as well as weaker demand, increased competition, and Middle East shipping disruptions. Meanwhile, metals faced softer orders, import competition, and regulatory constraints. Downstream, machinery manufacturers reported improvements, with machinery companies reporting rising demand, while food and beverage manufacturers also registered stronger orders. Other industries reported rising inventories and higher utility costs. source: Australian Industry Group

Industry Index Manufacturing in Australia increased to -8.70 points in September from -14.90 points in August of 2026. Industry Index Manufacturing in Australia averaged -9.15 points from 2020 until 2026, reaching an all time high of 20.70 points in December of 2020 and a record low of -35.30 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 October of 2026.

Industry Index Manufacturing in Australia increased to -8.70 points in September from -14.90 points in August of 2026. Industry Index Manufacturing in Australia is expected to be -18.00 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
2026-09-01 11:00 PM
Ai Group Manufacturing Index
Aug -16.6 -19.3 -21
2026-10-06 10:00 PM
Ai Group Manufacturing Index
Sep -8.7 -14.9 -16
2026-11-03 10:00 PM
Ai Group Manufacturing Index
Oct -8.7


Related Last Previous Unit Reference
Ai Group Industry Index -24.20 -1.60 points Sep 2026
Ai Group Services Index -31.10 -0.20 points Sep 2026
Ai Group Construction Index -34.50 -4.70 points Sep 2026
Ai Group Manufacturing Index -8.70 -14.90 points Sep 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
-8.70 -14.90 20.70 -35.30 2020 - 2026 points Monthly
SA

News Stream
Australia Manufacturing Contraction Eases Sharply
Australia’s Ai Group Industry Index for manufacturing remained in contraction in September, albeit at a softer pace, rising to -8.7 from August’s revised -14.9, marking the highest level since May 2023. The sector remained under pressure as lower domestic demand, rising input costs, and wage pressures affected both customers and businesses, contributing to delayed investment decisions and softer orders. Upstream industries continued to contract, with companies reporting rising costs for materials, freight, utilities, and fuel, as well as weaker demand, increased competition, and Middle East shipping disruptions. Meanwhile, metals faced softer orders, import competition, and regulatory constraints. Downstream, machinery manufacturers reported improvements, with machinery companies reporting rising demand, while food and beverage manufacturers also registered stronger orders. Other industries reported rising inventories and higher utility costs.
2026-10-06
Australia Manufacturing Contraction Eases
Australia’s Ai Group Industry Index for manufacturing remained in contraction in August, albeit at a softer pace, rising to -16.6 from July’s upwardly revised -19.3. The sector remained under pressure as lower domestic demand, rising input costs, heavier compliance burdens, supply chain challenges, and stronger competition from imports squeezed margins. Upstream industries showed improvement: chemicals increased activity due to new construction projects, despite rising input and material costs, market uncertainty, and staff shortages, while metals also recorded an improvement, concentrated in project-driven work. Downstream, machinery and equipment deteriorated amid lower orders, while food and beverage was the weakest sector, with demand weakened by adverse weather, rising input costs, and supply delays, alongside limited capacity to pass costs on to price-sensitive customers.
2026-09-01
Australia Manufacturing Contracts Further on Weak Demand
Australia’s Ai Group Industry Index for manufacturing fell deeper into contraction in July, sliding to -19.6 from June’s upwardly revised -13.9, partly unwinding the strongest improvement in eight months. The sector remained under pressure as subdued consumer demand, rising input costs, and heavier compliance burdens squeezed margins. Upstream industries showed mixed trends: chemicals contracted at a slower pace despite cost volatility and weaker construction demand, while metals lost momentum after June’s rebound, with firms citing rising costs, customer uncertainty, labour shortages, and higher employment expenses. Downstream, machinery and equipment posted its best result since July 2024, buoyed by mining and defence orders, reduced competition, and steady customer sales. Food and beverage softened as fuel and input costs weighed on margins, though stronger export demand from Europe, Asia, and China partly offset weaker domestic orders.
2026-08-04