Key findings

• The Australian Industry Index® strengthened in March, pointing to a steady recovery in industry across the first quarter of 2024.
• In trend terms, all four Aii component indexes – activity/sales, employment, new orders and inputs – have been recovering since a low occurring at the end of 2023.
• However, negative readings for sales and new orders continue to point to overall weak, if improving, conditions in Australian industry.
• March saw mixed results in upstream manufacturing, but improvement in business services and consumer facing industries.
• Input prices increased while sales and wage indicators dropped very slightly in March suggesting continuing margin pressure on businesses.

The contractionary conditions identified by the Ai Group Australian Industry Index® eased in March 2024, lifting by 9.5 points to -5.3 points (seasonally adjusted). The index has indicated contraction for the last twenty-three months.