Australia Industry Index

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.