Australian Manufacturing Index Weakens in October

2026-11-03 22:45 By Isabela Couto 1 min. read

The Australian Ai Group Manufacturing Index fell by 13.4 points to -20.1 in October 2026, reversing the previous month’s gains.

The sector faced weaker demand, rising input costs, labour shortages, shipping delays and overseas competition.

Downstream manufacturers were particularly affected by weakening consumer demand.

Cost pressures intensified as higher fuel prices filtered through supply chains.

However, subdued market conditions limited manufacturers’ ability to pass on these costs, squeezing margins.

The machinery and equipment index plunged 25 points to -43.2, its lowest level on record.

Food and beverage fell 28 points to -13.6, although it has remained relatively stable at around -10 over the past year on a trend basis.

Upstream, the chemicals index improved 10.3 points to -2.9, its strongest reading in two years, supported by increased domestic and overseas orders.

The metals index rose 4.8 points to -22.2 amid stronger demand and increased pre-Christmas ordering.



News Stream
Australian Manufacturing Index Weakens in October
The Australian Ai Group Manufacturing Index fell by 13.4 points to -20.1 in October 2026, reversing the previous month’s gains. The sector faced weaker demand, rising input costs, labour shortages, shipping delays and overseas competition. Downstream manufacturers were particularly affected by weakening consumer demand. Cost pressures intensified as higher fuel prices filtered through supply chains. However, subdued market conditions limited manufacturers’ ability to pass on these costs, squeezing margins. The machinery and equipment index plunged 25 points to -43.2, its lowest level on record. Food and beverage fell 28 points to -13.6, although it has remained relatively stable at around -10 over the past year on a trend basis. Upstream, the chemicals index improved 10.3 points to -2.9, its strongest reading in two years, supported by increased domestic and overseas orders. The metals index rose 4.8 points to -22.2 amid stronger demand and increased pre-Christmas ordering.
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