Key findings

• The Australian Industry Index® fell slightly by 1.8 points to -11.9 seasonally adjusted in June.
• Supply side factors eased as input costs and average wages declined, pointing to continued softening of inflationary pressures.
• Demand side weakness continued, as new orders dropped while sales remain subdued, with manufacturers particularly affected.
• Business services continued to lift and rose to the best result in two years. Construction has been slowly recovering since mid-2024 amid a strong pipeline of historical work.
• Manufacturing performance continues to decline despite the broader recovery in industrial sectors, with conditions in the machinery and metals especially poor.

The contractionary conditions in the Ai Group Australian Industry Index® continued and deteriorated slightly in June by 1.8 points to
-11.9 points (seasonally adjusted). The index has indicated contraction for the last thirty-six months.