Ai Group Australian Industry Index - June 2024

Key findings

• The Ai Group Australian Industry Index® eased in June but continued to point towards contractionary conditions.
• The activity/sales, new orders and employment indicators all rebounded after a very weak May, but remain in negative territory.
• The input prices and wages indicators both materially jumped in June, pointing to persistent cost and inflation pressures in industry.
• Food manufacturing was the only subindustry to report expansion, while the contraction in construction and chemicals eased
• Capacity utilisation lifted marginally to 76.5%, reflecting ongoing supply side pressures, particularly for labour.

The contractionary conditions in the Ai Group Australian Industry Index® continued but eased in June 2024, lifting 14.7 points to -25.6 points (seasonally adjusted). The index has indicated contraction for the last twenty-six months.