2025.09.0223:12:14UTC+00Australian Industry Activity Slumps: Ai Group

In August, the Ai Group Australian Industry Index experienced a notable decrease, falling by 7.9 points to -13.9, a drop from the peak observed in July. This decline was evident across several key areas, including sales, employment, new orders, and input volumes, overturning the positive trends noted at the beginning of the financial year. Specifically, the sales indicator declined to -12.1, and the employment index fell to -9.8, indicating a gradual weakening in the labor market. While export demand remained robust for certain firms, domestic sales were sluggish, and new orders saw a significant drop to -17.8. Input volumes likewise contracted, plummeting 20.3 points to -14.8, as the rising cost of living dampened consumer demand. Market sentiment was notably subdued due to heightened uncertainty, import competition, and overarching economic pressures. In contrast, sales prices managed to increase, while input costs and average wages decreased, thereby narrowing the disparity between selling prices and costs.