The Ai Group Australian Industry Index rose 4.2 pts to -12.3 in May, signaling continued contraction for the 35th consecutive month, though conditions are gradually improving from late 2024 lows.

• The Australian PMI (manufacturing) remained deeply negative at -23.5, while the construction PCI improved 1.0 pt to -6.4.
• Activity/sales rose 0.9 pts to -18.3 and new orders improved 9.0 pts to -10.3, but both remain in contraction.
• Employment climbed 6.2 pts to -9.6, continuing a slow upward trend but still reflecting contraction.
• Input prices surged to 47.6, while sales prices stayed weak at -5.9, widening the margin squeeze to its worst since early 2023.
• Average wages rose slightly to 38.8, contributing to persistent cost pressure across the sector.