FX.co ★ Australia Manufacturing Contraction Steady: Ai Group

The Ai Group Industry Index indicated that Australia's manufacturing sector experienced a contraction similar to that of May, recording a figure of -23.5. Manufacturers are grappling with delays in key projects alongside increasing uncertainty both globally and domestically. Within the sector, performance varied significantly among categories. The chemicals index took a sharp decline, dropping by 32.1 points to -38.2, as customer confidence was undermined by changes in international tariff policies. Although the minerals and metals sector improved by 22.0 points, it still remains in contraction with a score of -11.2. The machinery and equipment category saw further declines, losing 5.8 points to reach -49.2, marking its lowest point since January 2020. This drop is attributed to supply chain disruptions, reduced capital investment, and escalating import costs. On a slightly positive note, the food, beverages, and textiles sector improved marginally by 5.2 points to -10.0, yet continues to remain in negative territory.