Australia’s manufacturing sector remained in contraction in June 2026, but the pace of decline moderated, according to the latest AIG Manufacturing Index data. The index climbed to -16.8 in June from -22.4 in May 2026, signaling that while conditions are still weakening, the downturn is becoming less severe.
The improvement suggests some stabilization in the sector after a deeper contraction in May. However, with the index remaining firmly in negative territory, Australian manufacturers are still facing a challenging environment. The data, updated on 30 June 2026, will be closely watched by analysts and policymakers for signs of whether the sector can continue to narrow the gap toward neutral in the coming months.
