Australian Industry Activity Slows in September: Ai Group

The Ai Group Australian Industry Index fell by 2.4 points to -16.0 seasonally adjusted in September. In trend terms, the indicator has been improving throughout 2025, but sales activity remains mixed as weak demand, project delays, and labor shortages offset gains in some sectors. The employment index declined to -11.2, with the trend series reversing after peaking in June, reflecting ongoing challenges in attracting and retaining skilled staff amid widespread labor shortages and wage pressures. Overall, new orders and enquiries have softened, despite modest increases in areas such as exports and larger projects, as delays, low demand, and economic uncertainty continue to suppress order volumes. Rising competition from imports and soft demand has eased all pricing indicators, with a notable drop in the sales price index highlighting intensifying pricing pressures across industries.