FX.co ★ Australian Industry Index Extends Contraction: Ai Group

The Ai Group Australian Industry Index saw a slight decrease of 1.8 points, landing at -11.9 for the month of June, signaling ongoing contraction. Sales activity, while still negative at -15.6, demonstrated some improvement from previous lows, highlighting a gradual recovery from early 2024. Employment conditions showed signs of stabilization, climbing 6.6 points to -1.9, although the issue of skilled labor shortages persists, alongside continued weakness in the retail sector. New orders experienced a minor decline to -13.8, and input volumes saw a regression from May's progress, dropping 8.9 points to -11.7. Despite some hopeful indicators, such as a rise in enquiries and the presence of larger contracts maintaining operations, overall demand remains tepid in a restrained spending climate. Pricing trends were varied, with sales prices on an upward trend and input costs slightly decreasing, which narrowed the margin gap. However, there are still notable pressures on profitability driven by global market instability, changes in regulations, and import competition.