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.