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• ACCI-Westpac Business Survey: Q4 2025 2025-12-15 20:30

  

  Conditions in the manufacturing sector improved significantly heading into year-end. The Westpac-ACCI Actual Composite moved decisively into positive territory, up from 49.4 in Q3 to 55.1 in Q4, marking the strongest reading since mid-2024. The increase was driven primarily by an expansion in output and a lift in new orders. Employment also rose, albeit more modestly, while overtime usage was unchanged.

  • This improvement echoes trends in official data. There is a genuine upswing in consumer spending underway, coming off the back of an improvement in real household disposable incomes. Moreover, there were some early signs of a broader pick-up in investment across the economy.
  • The latest improvement still fell short of expectations, however, manufacturers remain increasingly optimistic. The Westpac-ACCI Expected Composite climbed to a post-pandemic high of 62.8 in Q4. This optimism is broadly based across production, demand and labour market sub-components, underscoring manufacturers confidence in the current economic upswing.
  • Still, there remain some risks. Inflation has recently picked up, and there is some uncertainty over the trajectory for interest rates. How these dynamics unfold and the impact on consumer demand and/or investment, will be key.
  • Cost pressures have eased notably since 2022/23, but they remain elevated at around double the pre-pandemic average pace. Against this backdrop, manufacturers are finding there is limited scope to pass on these costs in the form of higher prices. Although profit expectations have improved recently, this appears to reflect a greater degree of confidence over the direction, rather than magnitude.
  • The increase in headcount in Q4 marks a tentative shift from the moderate job shedding environment over the past two years. However, the availability of skilled labour remains a pressing issue, with a net 22.4% of manufacturers indicating that labour was "harder to find" now versus six months ago. Additionally, 24% of respondents cited labour as the single factor most limiting production – continuing one of the longest stretches of acute labour shortages in the survey's rich history dating back to the 1960s.
  • Capacity utilisation bounded higher in Q4, supported by firmer new orders and output and a modest lift in employment. There is a risk that labour unavailability, together with material shortages, keeps capacity relatively tight for longer, hampering firms' ability to meet demand in full.
  • Firms still expect to expand investment and capacity. A net 26% of respondents indicated they intend to increase plant and equipment investment over the coming year, while a net 12% intend to lift building investment.

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• ACCI-Westpac Business Survey: Q3 2025 2025-09-15 20:30

  

  Australia’s Westpac–ACCI Actual Composite fell to 48.8 in Q3 2025 (from 51.5 in Q2), slipping into contraction and signaling broad-based weakness across the manufacturing sector.

  • The Expected Composite remained optimistic at 58.1, down slightly from 59.1 in Q2, highlighting a gap between sentiment and actual conditions.

  • Output, new orders, and labor market components all weakened, reflecting patchy private demand recovery and uneven business investment.

  • A net 10% of firms anticipated an improvement in the six-month outlook, though the risk of a more gradual recovery keeps sentiment fragile.

  • Cost pressures remain elevated at about double the pre-pandemic average, with 39% of firms reporting higher unit costs compared to just 16% raising selling prices, underscoring ongoing margin squeezes.

  • Profit expectations were more positive, with a net 24% expecting improvement, above the long-run average of 19%.

  • Labor availability constraints persist, with 10.4% of firms citing worsening conditions, though this has eased from 22.1% six months ago.

  • Investment intentions remained firm, with a net 17% planning to increase plant and equipment investment and 4% intending to boost building investment over the next year.

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• ACCI-Westpac Business Survey: Q2 2025 2025-06-23 20:30
  

  The Australian ACCI-Westpac Business Survey Actual Composite index increased 0.8 pts to 51.6 in Q2 2025, indicating a moderately expansive manufacturing conditions.

  • The Expected Composite index jumped 3.7 pts to 59.3, just slightly below the 5-year pre-pandemic average.
  • The Labour Market Composite improved marginally, lifting to 44.6 from 44.0, reflecting a continued but modest turnaround since the start of last year.

  

  • The rebound in manufacturing sentiment looks to have shifted into a higher gear. A net 22% of respondents expect the general business situation to improve over the next six months, up from a net 5% three months ago.
  • The survey reports that output growth held steady in June, with a net 9% of manufacturers' reporting an increase in Q2, the same as what was observed in Q1.
  • The recovery in new orders continued into mid-year, with a net 9% of respondents reporting an increase in June, up from a net 5% in March and a decline toward the end of last year.
  • That said, manufacturers have turned very optimistic on the near-term recovery in domestic demand. A net 30% of firms anticipate an increase in new orders over the next three months. Whether these expectations can be met in full remains an open question.

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• ACCI-Westpac Business Survey: Q1 2025 2025-03-16 20:30

  
• ACCI-Westpac Business Survey: Q4 2024 2024-12-16 20:30