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Australian Industry Index Continues to Show Weakness in July, Australian Industry Group Says

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The Australian Industry Index continued to show weakness in July, remaining steady at negative 29.9 in seasonally adjusted terms, with pricing indicators stabilizing following three months of very high scores caused by energy prices, according to a report released by the Australian Industry Group on Wednesday.

The indicators show a recent easing in global energy markets, but energy and industrial prices remain structurally elevated, the report said.

Pricing indicators moved downward in July, with input prices falling by 18.9 points to 53.9, following a peak in June. Sales prices also fell slightly to 15.1, lower than the previous three months.

The activity/sales indicator eased to negative 34.8, but remained firmly in contraction, while the contraction in new orders eased slightly, improving by 3.7 points to negative 32.8.

The employment indicator fell again to negative 23 following volatility in the first half of the year.

Manufacturing remained weak, particularly impacted by the energy crisis on upstream subsectors, while construction activity is also subdued due to energy and consumer spending pressures.

The Australian PMI (manufacturing) fell 5.7 points to negative 19.6 in July, while the Australian PCI (construction) fell 7.3 points to negative 40.6, per the report.

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