2025.12.0222:16:16UTC+00Australia Manufacturing Contraction Eases: Ai Group

The Ai Group Industry Index recorded a slight improvement in Australia's manufacturing sector, moving to -18.0 in November from October's -22, yet overall activity remained sluggish. Trends across the manufacturing landscape were varied, as weak demand, escalating costs, and labor shortages continued to hinder production. Nonetheless, an uptick in machinery orders and a degree of export demand provided some respite. The chemicals sector witnessed a rebound to -19.9, assisted by seasonal factors and stronger export sales; however, ongoing cost pressures and drought conditions remain challenging. The minerals and metals sector dipped further to -37.0, as a result of increased energy and wage expenses paired with declining consumer confidence. On a brighter note, the machinery and equipment index climbed to -7.9 due to robust orders, while the food, beverages, and textiles, clothing, and footwear (TCF) sectors slid to -14.1 owing to higher input costs and weather-induced supply disruptions.