Australia Industry Index

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.