2025.11.0422:12:52UTC+00Australian Industry Conditions Improve: Ai Group

In October, the Ai Group Australian Industry Index rose by 4.2 points to reach -11.2, on a seasonally adjusted basis. Despite the ongoing improvement through 2025, activity levels remain varied. Domestic demand and certain segments of export demand were subdued. Customer hesitation, project delays, adverse weather conditions, and an increase in offshore sourcing have counterbalanced advancements in certain areas of the economy. The employment index saw a notable increase, climbing 10.9 points to a neutral position of 0.0, primarily driven by eased labor supply constraints within the construction sector. However, widespread skill shortages continue to impact productivity, leading some companies to hold off on filling vacancies. While new orders remained steady in October and input volumes increased, trend data indicates that the recovery in new orders has stalled since June. Respondents attributed this to erratic demand, a decrease in inquiries, and growing competition from imports. Pricing indicators showed minimal movement: input costs experienced a slight rise, sales prices saw a minor decrease, and firms reported increased price competition, with some businesses starting to pass on cost increases.