Australian Industry Index

Australian Industry Index

AUSTRALIAN INDUSTRY INDEX

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Manufacturers report pandemic-era lows

Key findings

  • The Ai Group Australian Industry Index ® indicated contracting conditions in June, for the fifteen months since the start of the current interest rate rising cycle.
  • The Australian PMI® indicator fell to -25.6, indicating contractionary conditions in manufacturing not seen since the height of the pandemic.
  • The employment, industrial activity and new orders indicators all weakened into broader contraction.
  • Price indexes all rose mildly in July, reflective of lower but still persistent inflation. The average wages indicator surged by 14.0 points to its highest level, indicating ongoing wage pressures in the tight labour market.
  • Capacity utilisation fell marginally to 79.0%, reflecting slowing industrial conditions.

The Ai Group Australian Industry Index® fell in July 2023, losing 2.8 points to -14.7 points (seasonally adjusted). This indicates contractionary conditions. The index has been in contraction for the last fifteen months.