FX.co ★ Australian Industry Activity Improves: Ai Group

The Ai Group's Australian Industry Index experienced a slight increase of 0.2 points, reaching -12.3 when seasonally adjusted for December/January. While the indicator has shown gradual recovery throughout 2025, activity levels remain varied. Domestic demand was sluggish due to seasonal challenges. Additional factors such as economic uncertainty, rising input costs, regulatory pressures, and persistent labor shortages continue to impact productivity. However, this was partially offset by an increase in construction inquiries and improved conditions within the metals and food sectors. The employment index remained relatively stable at -4.7, highlighting ongoing challenges in finding qualified staff. This has led some companies to scale back their operations, with others opting to hold vacancies open amidst enduring skill shortages. New orders saw improvement in December/January, increasing by 4.1 points to -14.2 as the work pipeline for 2026 started to materialize. In contrast, input volumes slightly decreased to -15.7, maintaining a similar contraction rate as observed in November. Pricing indicators displayed a modest easing, with both input and sales prices experiencing declines, whereas wages remained on the higher side.