Latest News Stream - Industry Index

Australia’s Industry Index plunged to -24.2 in September from a revised -1.6 in the previous month, underscoring mounting uncertainty as volatile prices and market conditions stifle investment, orders, and planning. Firms reported growing difficulty accessing finance, while cost pressures stayed high amid a second wave of fuel and downstream price rises that reignited inflation. The activity/sales indicator collapsed 28.5 points to -31.0, returning to deep contraction, and employment fell back into negative territory at -15.6, erasing August’s gains. New orders fell 22.4 points to -35.9, reversing prior gain, while input volumes weakened to -12.9. Input prices eased 10.6 points to 56.8, yet sales prices rose 13.0 points to 13.6, hinting at improved cost pass-through. The gap between input and sales prices remained wide at 43.2 points, leaving margins under strain despite partial relief. Capacity utilisation eased to 77.2% despite rising costs, labor shortages, and intense competition.

Australia’s Industry Index surged to -3.5 in August from a revised -26.3 in the prior month, its highest since February, signaling a sharp rebound in business conditions. Construction and business services led the recovery, buoyed by data centre projects. Activity and sales jumped 31.2 points to -2.2, new orders rose 15.9 points to -14.9, and employment gained 24.9 points to 3.0, all at their strongest since the energy crisis began. Firms reported mixed fortunes: some secured contracts and project wins, while others faced weaker sales and enquiries. Input volumes remained constrained by supply-chain disruptions, elevated costs, and geopolitical uncertainty. Pricing indicators diverged: input prices climbed 10.8 points to 68.0, while sales prices fell 13.1 points to 0.2, leaving a record 67.8-point margin gap. Average wages rose 16.9 points, reflecting annual increases at the start of the new financial year, underscoring persistent labor cost pressures despite headline improvement.

Australia’s Industry Index edged up 0.5 points to -30.0 in June 2026, signaling modest relief as lower fuel prices eased energy-related pressures. Yet higher costs and lingering uncertainty kept conditions weak. New orders fell 5.1 points to -41.0, among the lowest since the pandemic, underscoring thin pipelines, delayed decisions, and weak enquiries. Input volumes rose 3.3 points but stayed flat on trend, while activity and sales eased 8.7 points to -42.4. Employment remained in contraction at -15.5, constrained by skilled labor shortages, rising wages, and hiring difficulties. Cost pressures intensified: input prices surged 15.8 points to 80.5, while sales prices added 1.0 point to 19.2, leaving a record 61.3-point margin gap. Capacity utilisation eased to 72.8%, weighed by high energy and input costs, freight disruptions, labor shortages, and regulatory hurdles. Looking ahead, subdued investment, tax burdens, and persistent uncertainty are expected to keep utilisation under strain.

The Australian Industry Index fell 19.9 points to -23.6 in March as the energy crisis hit. The indicator reversed its 2026 recovery with the steepest monthly fall in the series. Domestic demand weakened amid Middle East conflict uncertainty while rising fuel costs and supply chain disruptions weighed on activity. The employment index dropped sharply to -28.7 reflecting levels not seen since May 2020 as weaker activity led firms to consider reducing hours despite persistent skills scarcity. New orders declined 21.7 points to -23.0 as paused projects and lower confidence constrained the pipeline while input volumes fell 12.9 points into contraction. Pricing indicators showed intensifying pressure with input prices rising to 8.5 as energy costs spiked while sales prices rose as firms attempted to pass on costs despite a widening gap between the two indices. Economic activity remains under pressure with capacity utilization falling below the long term average of 77% to 82%.

The Ai Group Australian Industry Index lifted 9.0 points to -1.5 seasonally adjusted in February. The indicator has continued to recover through 2025, but activity remains flat. Domestic demand remained subdued amid soft conditions, while regulatory pressures, skills shortages, and rising input costs continued to weigh on activity, partly offset by significant growth in business services and stronger enquiry conversion rates. The employment index moved into positive territory for the first time in three years, rising to +12.8, reflecting firms retaining labor in anticipation of a gradual recovery despite persistent skills scarcity. New orders improved in February, rising 11.4 points to -2.1 as the 2026 work pipeline began to flow through, while input volumes rose sharply to 8.1, moving back into positive territory. Pricing indicators showed persistent pressure, with input prices rising and sales prices holding steady, while wages remained elevated.

The Ai Group Australian Industry Index edged up 0.2 points to -12.3 seasonally adjusted in December/January. The indicator has continued to recover through 2025, but activity remains mixed. Domestic demand remained subdued amid seasonal challenges, while economic uncertainty, rising input costs, regulatory pressures and labour shortages continued to weigh on activity, partly offset by stronger construction inquiries and improved conditions in metals and food industries. The employment index was broadly stable at -4.7, reflecting ongoing difficulties in securing suitable staff, with some firms scaling back operations and others holding vacancies amid persistent skill shortages. New orders improved in December/January, rising 4.1 points to -14.2 as the 2026 work pipeline began to flow through, while input volumes fell slightly to -15.7, contracting at a similar pace to November. Pricing indicators eased modestly, with both input and sales prices declining, while wages remained elevated.

The Ai Group Australian Industry Index declined 0.6 points to -12.5 seasonally adjusted in November. The indicator has continued to recover through 2025, but activity remains mixed. Domestic and some export demand was subdued and customer hesitation, project delays, weather impacts and increased offshore sourcing offset gains in parts of the economy. The employment index fell 5.9 points to -5.9, reversing October’s gains, as firms typically chose not to replace leavers and widespread skill shortages continued to limit productivity while some firms shelved vacancies. New orders and input volumes both deteriorated in November, but trend data show the recovery in new orders has stalled since June—respondents cited erratic demand, fewer enquiries, project delays and rising offshoring. Pricing indicators point to re-emerging cost pressures: the input price indicator rose 6.3 points, while sales prices and wages were broadly steady as more firms sought to pass on higher input costs.

The Ai Group Australian Industry Index improved by 4.2 points to -11.2 seasonally adjusted in October. The indicator has continued to improve through 2025, but activity remains mixed. Domestic and some export demand was subdued and customer hesitation, project delays, weather impacts and increased offshore sourcing offset gains in parts of the economy. The employment index rose 10.9 points to a neutral reading of 0.0, led by eased labour supply constraints in construction, though widespread skill shortages still limit productivity and some firms are shelving vacancies. New orders held steady in October while input volumes climbed, but trend data show the recovery in new orders has stalled since June—respondents cited erratic demand, fewer enquiries and rising competition from imports. Pricing indicators were little moved: input costs rose slightly, sales prices eased slightly, and firms reported intensifying price competition even as some businesses began to pass on cost increases.

The Ai Group Australian Industry Index fell by 2.4 points to -16.0 seasonally adjusted in September. In trend terms, the indicator has been improving throughout 2025, but sales activity remains mixed as weak demand, project delays, and labor shortages offset gains in some sectors. The employment index declined to -11.2, with the trend series reversing after peaking in June, reflecting ongoing challenges in attracting and retaining skilled staff amid widespread labor shortages and wage pressures. Overall, new orders and enquiries have softened, despite modest increases in areas such as exports and larger projects, as delays, low demand, and economic uncertainty continue to suppress order volumes. Rising competition from imports and soft demand has eased all pricing indicators, with a notable drop in the sales price index highlighting intensifying pricing pressures across industries.

The Ai Group Australian Industry Index fell by 7.9 points to -13.9 in August, retreating from July’s peak. Activity declined across sales, employment, new orders, and input volumes, reversing the gains seen at the start of the financial year. The sales indicator slipped to -12.1, while the employment index dropped to -9.8, reflecting gradual softening in the labor market. Export demand remained strong for some firms, but domestic sales lagged, and new orders fell sharply to -17.8. Input volumes also contracted, down 20.3 points to -14.8, as cost-of-living pressures weighed on customer demand. Market sentiment remained weak amid rising uncertainty, import competition, and broader economic pressures. Despite this, sales prices rose while input costs and average wages eased, narrowing the gap between selling prices and costs.

The Ai Group Australian Industry Index rose by 5.8 points to -3.2 in July, marking its strongest reading in three years and continuing a gradual recovery trend seen since mid-2024.ew orders rebounded by 6.8 points to -4.9, while input volumes reached near-neutral levels at -0.3—their highest since April 2024. Some businesses reported increased customer enquiries, though others noted lingering uncertainty from global tariffs and weak consumer confidence. The sales index also improved to -8.1, the best result since August 2022, as trend momentum picked up. However, the employment index edged slightly lower to -4.0, with persistent challenges in filling roles, especially in construction-related and labour hire sectors. Input prices surged by 11.1 points to 47.9, while sales prices fell slightly, widening the cost-to-price gap to 43.4 and intensifying margin pressures. Despite rising input, wage, and utility costs, many firms are struggling to pass those increases onto customers.

The Ai Group Australian Industry Index edged down by 1.8 points to -11.9 in June, indicating continued contraction. While sales activity remained negative at -15.6, it showed a modest improvement from earlier lows, reflecting a slow but steady recovery since early 2024. Employment also improved, rising 6.6 points to -1.9, suggesting stabilizing labor conditions. However, challenges remain, including skilled labor shortages and ongoing weakness in the retail sector. New orders dipped slightly to -13.8, while input volumes reversed May’s gains, falling 8.9 points to -11.7. Despite some positive signs, such as increasing enquiries and larger contracts sustaining operations, overall demand remained soft amid a cautious spending environment. Pricing indicators were mixed, with sales prices rising and input costs easing slightly, narrowing the margin gap but still highlighting persistent pressure on profitability due to global volatility, regulatory shifts, and import competition.

The Ai Group Australian Industry Index rose by 5.1 points to -15 seasonally adjusted in April, amid ongoing challenges across the industrial sector. Global trade uncertainty, currency volatility, and the upcoming federal election weighed on activity, despite slight improvements in short-run indicators. Employment conditions deteriorated further, with the index falling to -18.2, continuing a decline since mid-2024. While the contraction in activity/sales eased, forward indicators and new orders remained weak. Respondents cited pre-election uncertainty, cost-of-living pressures, and a shortage of skilled labor as key drags, though some saw improved sales by shifting customer focus. Pricing pressures eased, with declines in sales and input price indicators, while wage growth remained steady in trend terms. Overall, heightened uncertainty continues to dampen investment and future planning.

The Ai Group Australian Industry Index decreased by 3.1 points to -22.2 seasonally adjusted in March, continuing a trend of contraction for the thirty-third consecutive month. Industrial markets are being affected by uncertainty factors, including US trade policies, forex volatility, and the Australian federal election. Although cost pressures have eased, the sales price indicator has dropped to neutral, signaling ongoing strain on industrial margins. Demand remains weak, with both new orders and activity indicators impacted by these uncertainties. The activity/sales indicator further contracted in March, falling by 7.7 points to -31.5, suggesting a continued decline in industrial activity through the first quarter of 2025. Employment conditions showed some improvement, with a rise of 5.8 points to -7.3, indicating a modest recovery since late 2024.

The Ai Group Australian Industry Index declined by 1.1 points to -17.6 points in February, marking its thirty-second consecutive month of contraction. The activity/sales indicator contracted further, falling by 3.4 points to -22.6, though it has shown improvement over the past year on a trend basis, despite remaining in negative territory. Employment declined by 2.9 points to -14.6, with the trend indicating little movement over the past six months. Businesses reported heightened competition from imports as customers sourced supplies directly, while increasing wages for skilled workers in government infrastructure projects added pressure on staffing costs. An uptick in absenteeism also impacted productivity in some industrial sectors. New orders remained stable at -18.9, reflecting a steady improvement since late 2024. Input volumes saw a significant rise of 15.6 points, reaching a neutral -0.5, though trend data shows continued contraction over the past year.