Australia’s manufacturing sector extended its downturn at the start of 2026, with the AIG Manufacturing Index weakening to -19.4 in January, down from -18.3 recorded in November 2025.
The fresh reading, updated on 03 February 2026, signals a deeper contraction for the industry, as negative values point to declining activity and sentiment across the sector. The move from -18.3 to -19.4 over the period suggests that conditions for Australian manufacturers have deteriorated further rather than stabilising into the new year.
With the index firmly in negative territory, the January 2026 data underscore persistent headwinds facing the country’s industrial base, highlighting an ongoing slowdown that may weigh on broader economic momentum if the trend persists.
