07-08-2025
Australian industry rebounds, manufacturing stalls in July: Ai Group
The July Australian Industry Index has revealed a sustained recovery in industrial sectors since late 2024, except for manufacturing. According to the monthly survey of business activity, manufacturing continues to contract while other parts of the industrial economy show steady improvement.
Manufacturers reported deteriorating business conditions, citing demand-side trade disruptions and escalating energy costs as primary concerns. The Australian Industry Group (Ai Group) noted that the sector has missed out on the broader industrial rebound.
"Manufacturing has been left behind from the recovery in Australia's industrial sectors since the start of this year," said Innes Willox, chief executive of the national employer association, Australian Industry Group.
The July Australian Industry Index shows a broad industrial recovery since late 2024, but manufacturing continues to weaken amid trade disruptions and rising energy costs. Ai Group's Innes Willox highlighted the sector's struggles, urging reform on energy, resilience and productivity at Treasurer Jim Chalmers' Roundtable to safeguard economic stability.
Willox highlighted that industrial gas prices have surged by 48 per cent since 2019, eroding Australia's long-standing energy cost advantage. This has contributed to a wave of plant closures and broader structural challenges for the sector.
'Treasurer Jim Chalmers' Roundtable this month can begin a clear reform path around the issues of energy, resilience and productivity. Given its centrality to our economic success, the issues impacting manufacturing in turn impact the entire economy,' Willox said in a release.
Fibre2Fashion News Desk (HU)
