Factsheet: Industry performance in Australia

As the Australian economy decelerated, the performance of its industries weakened across the financial year. Capex growth declined, while value-add, sales, profits and employment generation grew at marginal rates

Industry value-add

Growth in Australian industry value-add was steady at 3.3% in the year to the March quarter 2025. Following a period of volatility during the pandemic, growth in industry value-add has decelerated since mid-2022. While most industries are now slowing, agriculture, utilities, arts and recreation and administrative and support services – continue to grow.

Income and sales

Business income from sales of goods and services grew 2.2% in the year to the March quarter 2025. Sales income growth has slowed considerably following a post-pandemic rebound, when it grew at 19.8% y/y in the third quarter of 2022. Sales growth remains positive for financial services, utilities, construction and administrative and support sectors, but has fallen for the mining industry.

Employment and job creation

Australian filled jobs growth was 1.7% p.a. in the year to the March quarter 2025. This is the first quarter job creation growth slowed to 2019 levels after the pandemic boom, yet it remains above the long-run trend. It is slower in some industries struggling with skills shortages and vacancy challenges, particularly arts and recreation services, real estate, wholesale trade and agriculture.

Capital expenditure (capex)

Non-mining capex growth in Australia has slowed to 1.4% in the year to the March quarter 2025, down from a peak of 23.7% in June quarter 2023. Capex growth has dropped significantly in the year, following a declining trend seen in other industrial indicators. Public administration, utilities, wholesale, professional, scientific and technical, and other services report higher growth rates, while it has declined for transport, manufacturing, retail and education.

Gross operating profits

Non-mining business profits were 2.5% over the year to the March quarter 2025. Following a period of volatility during the pandemic, growth in have slowed since 2022. Most industries reported negative profits growth, with mining (-19.8%) the lowest among them.

Explanatory note on Australian industrial indicators

Industry value add measures the value of industry output less the value of intermediate inputs. It provides an indicator of how much economic output is being generated by an industry.

Income from sales of goods and services measures the value of goods sales and fees from services and commissions. It provides an indicator of business sales performance within industries.

Filled jobs measures the number of jobs which are not currently vacant. It includes both full- and part-time employees. Growth in filled jobs provides an indicator of aggregate job creation by industry.

Capital expenditure (capex) measures expenditure on new tangible assets, such as buildings, structures, equipment, plant and machinery. It excludes business investment on non-tangible assets. It provides an indicator of business investment in physical assets.

Business gross operating profit measures the operating profit of both incorporated (company) and unincorporated businesses. It excludes interest income and expenses, depreciation and amortisation, and financial items not related to the production of goods and services. It provides an indicator of changes in the profitability of industries, before financial factors such as cost of capital and tax are taken into account.

Sources: The data in this factsheet are derived from various ABS industry and labour surveys. Data is collected on a quarterly basis, and is typically released two months following the reference period (i.e. June quarter data is released in early September). Ai Group Research & Economics will update this factsheet as ABS data is released. Refer to notes in the charts for links to the ABS source data.

Ai Group Research & Economics Team

Website: Research and Economics Resource Centre

Email: economics@aigroup.com.au