FX.co ★ Australia Industry Index Remains Under Pressure

The Australian Industry Index rose by 6.4 points to -19.1 in October 2026 compared with September, indicating a slight improvement in business conditions, though the index remained firmly in negative territory. Activity, employment, new orders and input indicators all strengthened modestly but continued to point to overall weakness. Activity was still constrained by subdued sales, softer demand and fewer orders, despite some pickup ahead of Christmas. Cost pressures intensified as higher fuel prices continued to flow through supply chains. However, weak market conditions limited firms’ ability to pass on these higher costs, further squeezing profit margins. Manufacturing was particularly affected by rising input costs, with no clear signs of a sectoral recovery. Downstream manufacturers faced additional headwinds from a softening consumer economy. Business services and construction also improved in October relative to September, but conditions in both sectors remained weak by historical standards.