2025.09.0223:17:12UTC+00Australia’s Manufacturing Sector Still Weak: Ai Group

The Ai Group Industry Index indicates a moderate uptick in Australia's manufacturing sector, with a 2.9 point increase to -20.9 in August, signifying slight progress yet still locked in contraction. Over the past year, manufacturing has stagnated in trend terms, as companies grapple with escalating costs, tepid demand, project delays, and policy unpredictability, notwithstanding some encouraging export advances. The subsector performance was mixed: chemicals declined by 3.2 points to -19.8, minerals and metals dipped slightly by 0.7 points to -16.7, and machinery and equipment suffered a significant drop of 18.9 points to -30.7 due to supply chain issues and diminished demand. Conversely, the food, beverages, and textile, clothing, and footwear (TCF) sectors saw an increase of 13.7 points to -21.1, driven by seasonal orders in preparation for Christmas, although they still faced challenges from energy costs and domestic uncertainties. In summary, while August revealed early recovery signs for manufacturing, the overall conditions remained weak across the sector.