Australia’s Industry Index registered -29.9 in July 2026, virtually unchanged from -30.0 in June. A moderating energy crisis provided only limited relief, as elevated fuel costs continued to weigh on operations. New orders showed a modest improvement, rising 3.7 points to -32.8, while input volumes declined 6.1 points to -9.1, remaining mildly contractionary on trend.
Activity and sales deteriorated further to -34.8, underscoring subdued demand and constrained investment in the face of persistently high costs. Employment eased to -23.0 after a volatile first half of 2026, as firms continued to contend with labour shortages and rising wage bills.
Cost pressures showed tentative signs of easing. Input prices fell 18.9 points to 53.9, retreating from June’s record high, while sales prices slipped to 15.1, pointing to more stable price growth following Q2 volatility. Capacity utilisation inched up to 74.0%, but businesses still reported a wide range of challenges, including elevated raw material, fuel and freight costs, regulatory burdens, tight labour supply, weak capital investment, and rising land taxes.
