Ai Group Australian Industry Index®

The Ai Group Australian Industry Index® is representative of the modern industrial ecosystem. It brings together the manufacturing, construction, engineering, technology and business services sectors – industries which together account for 36% of the Australian economy.

Recognising the heritage and importance of the Australian PMI® and Australia PCI®, both will continue as sub-indicators available within the Ai Group Australian Industry Index®, however, there will no longer be separate release dates for these indexes.

The Ai Group Australian Industry Index® is regularly published on the first working Wednesday of each month (or the following working day if the Wednesday is a national holiday): Australian Industry Index release dates 2025


May 2025: Trade-exposed industries buck recovery trend

Key findings

  • The Australian Industry Index® improved by 4.2 points to -12.3 seasonally adjusted in May.
  • Overall, industrial sectors continued a slow process of recovery since late 2024, with construction and business services leading the way. Most indicators are returning towards neutral.
  • Two trade-exposed subindustries – chemicals and machinery – bucked this trend, posting material downturns in May on the back of uncertainty stemming from trade disputes and global volatility.
  • Sales price growth continues to soften while input and wages costs remain high, pointing to ongoing pressure on industrial margins.

The contractionary conditions in the Ai Group Aii ® eased slightly in May, lifting 4.2 points to -12.3 points (seasonally adjusted). The index has indicated contraction for the last thirty-five months.

Economic Intelligence newsletter

May 2025

In the May edition of Economic Intelligence we cover:

  • The slow slide of housing productivity in Australia: This research note examines the decline in Australia's housing productivity over the past two decades and stresses the need to address industry issues to resolve the national housing crisis.
  • Tracking Australian industry: Core inflation is back within its target range following the weakest economic year since the 1991 recession, with anticipated slower investment growth in 2024-25 combined with the recessionary conditions in the manufacturing sector, wage impacts from the Annual Wage Review, and rising burdens from taxes.
  • Economic Forecasts: The IMF's latest forecast downgrades Australia’s economic growth projection due to US tariffs and trade disruptions, with slower expansion and fluctuating inflation expected over the next two years.

Detailed Index Data

Our reports and time series data for the Ai Group Australian Industry Index® are available free of charge to Ai Group members at any time via email from our economics research team economics@aigroup.com.au. Our data are available to non-members on an annual subscription basis or a one-off purchase. Our data subscribers receive the report and time series data for the activity index, sector and selected states via email each month.

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The Australian Industry Group is the peak membership body for Australian industry, linking you to the insights, services and expertise you need to be successful. As a member of Ai Group, you are part of a powerful, credible and experienced industry community.