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2026.09.0123:09:59UTC+00Australia Manufacturing Contraction Eases

Australia’s Ai Group Industry Index for manufacturing remained in contraction in August, though conditions improved slightly, with the index rising to -16.6 from July’s upwardly revised -19.3. The latest reading indicates that while the downturn in manufacturing softened, activity stayed firmly in negative territory. The sector continued to face significant headwinds, including subdued domestic demand, rising input costs, increased compliance obligations, ongoing supply chain disruptions, and intensifying competition from imports, all of which further compressed profit margins.

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