The Ai Group Australian Industry Index fell -1.8 pts to -11.9 in June, marking the 36th consecutive month of contraction, as manufacturing weakness continued to offset broader sector improvements.

• The Australian PMI (manufacturing) fell -5.5 pts to -29.3, while the PCI (construction) eased -7.4 pts to -14.9, reinforcing sectoral divergence.

• The contraction in sales activity eased slightly, improving 1.4 pts to 15.6 in June. Since reaching a recent trough at the start of 2024, the trend has shown gradual signs of recovery.
• Employment rose 6.6 pts to -1.9, approaching neutral for the first time since March 2024.

• New Orders edged down slightly to -13.8, maintaining a trend of gradual improvement since mid-2024.
• Input volumes dropped -8.9 pts to -11.7, reversing May’s gains and reflecting soft demand.

• Input prices declined to 36.5 and wages held at 36.8, signaling easing inflation pressures but ongoing margin constraints.