The Australian Industry Index lifted by 9.0 points to near neutral at -1.5 in February, the strongest headline result in four years.

• The uplift was driven by significant lifts in the employment, input and new orders indicators, while activity/sales remained flat.
• Business services activity increased significantly, supported by stronger orders in the new year. The rise in the headline indicator was primarily driven by services.
• Construction lost momentum in February, as regulatory burden and skills shortages weighed on operations. Manufacturing remained in contraction with soft demand conditions.
• Cost factors remain with the sales price indicator well behind input prices and wages, pointing to ongoing margin pressure.

The Australian Industry Index remained in contraction during Dec/Jan at -12.3 (seasonally adjusted).

• Activity, employment, new orders, and input volumes contracted at the same rate as the previous month.
• Construction activity rose with strong project inquiries, with the PCI indicator returning to positive territory for the first time in two years.
• Metals and food industries posted stronger results during the holiday period, while machinery and chemicals reported seasonal slowdowns.
• Most sub industries noted that rising higher input costs, taxes, regulatory pressures, and economic uncertainty impacted activity.

The Australian Industry Index® declined by 0.6 points to -12.5 seasonally adjusted in November.

• Employment, new orders and input volumes all weakened as the demand outlook softened at the end of the year.
• Pricing indicators point to a return of inflationary pressures, with input prices rising and more firms passing on cost through sales pricing.
• Manufacturing continues to slowly recover, with machinery reporting a material uplift. Construction activity slowed on the back of lower investment in the future work pipeline.
• Capacity utilisation fell 3.2% to 74.2%, the lowest level since August 2020.

The Australian Industry Index® improved by 4.2 points to -11.2 seasonally adjusted in October.

• The employment indicator returned to neutral for the first time in 18 months, led upwards by improving access to labour supply in the construction industry.
• Construction rose in the month, and in trend terms has seen steady improvement over the last year as supply constraints ease while market conditions improve.
• Manufacturing performance continued to weaken, particularly in the metals sector which is struggling with high energy prices and global trade headwinds.
• Pricing indicators suggest that industry is beginning to raise prices again after a year of absorbing cost increases on the balance sheet.

The Ai Group Australian Industry Index fell -2.4 pts to -16.0 in September 2025, with manufacturing (-13.2) and construction (-12.3) both in contraction, reflecting weak demand, labor shortages, and intensified price competition.

• The Australian manufacturing PMI jumped 7.6 pts to -13.2, offsetting a sharp decline in the Australian construction PCI, down -12.4 pts to -12.3. However, the longer-term trend measure shows construction still stronger than manufacturing.

• Activity/Sales declined -3.2 pts to -15.8, as project delays and weak demand weighed on output.

• Employment fell -1.2 pts to -11.2, with firms citing skill shortages and wage pressures.

• New Orders edged down -0.8 pts to -13.7, signaling subdued forward demand, while Input Volumes slipped -2.1 pts to -13.5.

• Input Prices dropped sharply -17.6 pts to 27.2, the lowest since August 2020, indicating easing cost pressures.

• Sales Prices also fell -6.7 pts to 6.4, reflecting intensified competition and import-driven pricing pressure.

• Average Wages eased -1.9 pts to 32.0, marking a two-year low but still elevated relative to historical averages.

• Capacity utilisation weakened further to 77%, below the long-term range of 79–82%, consistent with ongoing labor and supply-side constraints.

The Ai Group Australian Industry Index fell -7.9 pts to -13.9 in August, reversing July’s financial-year boost and reflecting broad weakness across sales, employment, new orders, and input volumes.

• The Australian PMI® (manufacturing) rose slightly (+2.1 pts) but remained deeply negative at -20.9, while the PCI® (construction) improved +1.5 pts to 1.0, its first expansionary reading since October 2023.

• Sales activity slipped -3.3 pts to -12.1, with export demand outperforming but domestic orders lagging; new orders dropped sharply (-11.0 pts) to -17.8, signaling weak forward demand.

• Employment fell -4.9 pts to -9.8, consistent with a gradual softening in labor market conditions and challenges such as skilled shortages, wage competition, and absenteeism.

• Input volumes contracted heavily (-20.3 pts) to -14.8, reversing gains from earlier in 2025, while input prices eased -2.6 pts to 45.4; average wages also softened -6.5 pts to 34.7.

• Sales prices increased +8.8 pts to 14.4, indicating firms are beginning to pass on rising costs, narrowing but not eliminating the margin gap with high input prices.