The Australian Industry Index eased by 5.1 points to -15.0 seasonally adjusted in April and has been in contraction for the last 34 months.

• The Manufacturing Index increased 3.7 pts to -26.5, and the Construction Index jumped 10.8 pts to -7.9.

• The contraction in the activity/sales indicator eased in April, lifting by 7.1 points to -18.3. In trend terms the index has improved from the recent trough in mid-2024.
• Employment deteriorated further in April, falling 5.8 points to -18.2 points. Industrial employment has been contracting since mid-2024.
• Global trade settings, currency volatility, and the federal election all weighed on industrials in April. Short-run indicators improved slightly but forward indicators remain very weak.
• Uncertainty arising from US tariffs is having differential effects on industry. Construction and services are showing improvement, but trade-exposed manufacturing industries continue to weaken.
• The metals and machinery subindustries are showing particular weakness, with uncertainty surrounding tariffs and currency weighing on current performance and future outlook.