Key findings

• The Australian Industry Index® indicated contracting conditions in April, for the twenty-fourth month since the start of the current interest rate cycle.
• While most activity indicators weakened slightly in April, in trend terms industrial activity continues to rebuild following a nadir around the new year period.
• The Australian PCI® indicator fell to -25.6, showing that the contraction in the construction sector has continued to deepen. Poor sales conversions have compounded supply chain and labour pressures on the industry.
• All subindustries continue to report contraction, with chemicals posting a steep decline in April. Minerals & metals and business services have recovered strongly since the new year and are close to returning to neutral readings.

The Ai Group Australian Industry Index® fell in April 2024, losing 3.6 points to -8.9 points (seasonally adjusted). The index has indicated contractionary conditions for the last twenty-four months.