FX.co ★ Australian Industry Shows Signs of Recovery: Ai Group

The Ai Group Australian Industry Index increased by 4.2 points to -12.3 in May 2025, signaling a steady, though gradual, recovery across various industrial sectors since late 2024. Employment conditions showed improvement as the jobs indicator rose by 6.2 points to -9.6, although it continued to be in contraction territory. Businesses encountered ongoing challenges, including deferred customer decisions, elevated interest rates, and global uncertainties, all of which contributed to delays in larger projects and a decrease in successful sales conversions. While there was a slight improvement in new orders, rising to -10.3, firms still faced hurdles such as high employee turnover and persistent skilled labor shortages. Pricing indicators presented a mixed picture in May, but overall trends indicated continuous pressure on profit margins, with both input and wage costs remaining high. Although the growth in sale prices has slowed, cost pressures have not shown signs of easing, adding to the tension on profitability. In overall terms, the industry is experiencing a gradual recovery, despite ongoing challenges.