Australia Industry Index

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.