The Ai Group Australian Industry Index® fell in June 2023, losing 1.1 points to -11.9 points (seasonally adjusted). This indicates contractionary conditions. The index has been in contraction for the last fourteen months.
Key findings for June 2023:
Innes Willox, Chief Executive of the national employer association Ai Group said: "Australian industry continues to struggle with weakening economic conditions. Indicators of new orders, employment and activity/sales all continue to point to contraction. While consumer inflation in Australia has now peaked, pricing indicators show that upwards price pressure for inputs and wages remains for industry. The weak employment indicator is a particular concern, coming at a time when the national economy is slowing, unemployment is creeping up, and industry is adapting to increasingly worsening conditions. The decision by the Reserve Bank to leave interest rates unchanged reflects this slowing environment and will provide some relief for the industrial sector and households," Mr Willox said.
Australian Industry INDEX® Activity indicators |
Index Jun 2023 |
Change from last month |
Australian Industry index® Sectors & subsectors |
Index Jun 2023 |
Change from last month |
Australian Industry Index® |
-11.9 |
-1.1 |
Australian PMI® (all manufacturing) |
-19.8 |
-14.7 |
Activity/Sales |
-13.5 |
3.2 |
Chemicals |
-41.3 |
-11.7 |
Employment |
-11.0 |
-1.1 |
Minerals & Metals |
-19.2 |
11.0 |
New Orders |
-15.8 |
-7.3 |
Machinery & Equipment |
3.5 |
5.5 |
Input Volumes |
-3.2 |
4.1 |
Food, Beverages & TCF |
19.7 |
24.2 |
Exports |
10.2 |
12.9 |
Australian PCI® (construction) |
10.6 |
17.2 |
Input Prices |
50.1 |
7.7 |
Business Services |
-21.7 |
-7.5 |
Sales Prices |
17.4 |
6.6 |
|
|
|
Average Wages |
43.5 |
11.6 |
Capacity Utilisation (%) |
80.8 |
-2.0 |
Positive scores indicate expansion; negative scores contraction |
Media enquiries
Tony Melville – 0419 190 347
About the Ai Group Australian Industry Index®
The Ai Group Australian Industry Index® is a monthly index that measures changes in activity in Australia’s industrial sectors. It provides diffusion indices which measure rates of changes in the level of industrial activity – expansion, stability, or contraction. A positive reading indicates the activity is expanding; negative indicates contraction. The distance from 0 indicates the strength of the expansion or decline.
The Australian Industry Index is based on monthly surveys from a national sample of Australian businesses. It uses ANZSIC industry codes for classifying sectors, and weights survey results using ABS data on gross value added by sector. Seasonal adjustment and trend calculations follow ABS methodology. For the detailed methodology, please visit https://www.aigroup.com.au/resourcecentre/research-economics/australian-industry-index/FAQs/
When referring to the Ai Group Australian Industry Index® the source should be attributed as “Australian Industry Group”.