FX.co ★ Australian Industry Conditions Inch Higher

Australia’s Industry Index inched up 0.5 points to -30.0 in June 2026, offering only modest relief as lower fuel prices slightly eased energy-related pressures. Overall conditions remained weak amid elevated costs and ongoing uncertainty.

New orders dropped 5.1 points to -41.0, one of the lowest readings since the pandemic, highlighting thin order pipelines, delayed decision-making, and subdued enquiry levels. Input volumes rose 3.3 points but were broadly flat relative to trend, while activity and sales weakened a further 8.7 points to -42.4.

Employment stayed in contraction at -15.5, as firms continued to grapple with skilled labour shortages, rising wage costs, and hiring challenges. Cost pressures intensified: input prices jumped 15.8 points to 80.5, while sales prices increased only 1.0 point to 19.2, widening the margin gap to a record 61.3 points.

Capacity utilisation eased to 72.8%, weighed down by high energy and input costs, freight disruptions, labour shortages, and regulatory constraints. Looking ahead, subdued investment, tax burdens, and persistent uncertainty are expected to keep capacity utilisation under pressure.